Other factors being equal,________-rated corporate bonds will pay the lowest amount of interest to bondholders.

Question

Quizplus · Accepted Answer

Bond ratings are used to evaluate the creditworthiness of a company and the likelihood of defaulting on their debt. AAA-rated bonds are considered the safest investment because they have the lowest risk of default. As a result, they offer lower interest rates to investors than lower-rated bonds. Therefore, other factors being equal, AAA-rated corporate bonds will pay the lowest amount of interest to bondholders.

Other Factors Being Equal,________-Rated Corporate Bonds Will Pay the Lowest