A higher bond rating usually means a lower yield.

Question

Quizplus · Accepted Answer

A higher bond rating indicates a lower risk of default, which makes the bond more attractive to investors. As a result, the demand for the bond increases and the issuer can offer a lower yield to investors. Conversely, a lower bond rating indicates a higher risk of default, which makes the bond less attractive to investors. To compensate for this higher risk, the issuer must offer a higher yield to investors.

A Higher Bond Rating Usually Means a Lower Yield