A company with a AAA bond rating will command a higher interest rate on its bonds than a company with a lesser BBB bond rating.

Name: A company with a AAA bond rating will command a higher interest rate on its bonds than a company with a lesser BBB bond rating.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is incorrect. A company with a AAA bond rating is considered to have a lower credit risk and therefore can issue bonds at a lower interest rate than a company with a BBB rating.

A Company with a AAA Bond Rating Will Command a Higher