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.

Question

Quizplus · Accepted Answer

According to Moody's rating system, an Aaa bond is considered to be investment grade, which represents a low credit risk, while a Caa bond is considered to be speculative, which represents a high credit risk. Therefore, the best choice is C, which states that an Aaa bond is investment grade and a Caa bond is speculative.

The Riskiness of Publicly Traded Bond Issues Is Rated by Independent