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The Riskiness of Publicly Traded Bond Issues Is Rated by Independent

Question 126

Multiple Choice

The riskiness of publicly traded bond issues is rated by independent agencies. According to Moody's rating system, an Aaa bond and a Caa bond are ________ and ________ respectively.


A) speculative; investment grade
B) prime quality; medium grade
C) prime quality; speculative
D) medium grade; lowest grade

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