Many companies try to maintain investment grade status due to the significant yield differential when rated with a junk-bond status.

Name: Many companies try to maintain investment grade status due to the significant yield differential when rated with a junk-bond status.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Maintaining an investment grade rating allows companies to borrow money at a lower interest rate compared to a lower junk-bond rating, resulting in a significant yield difference.

Many Companies Try to Maintain Investment Grade Status Due to the Significant