A corporate bond which receives a BBB rating from Standard & Poor's is considered ________.

Question

Quizplus · Accepted Answer

A bond with a BBB rating from Standard & Poor's is considered an investment grade bond, which means it has a lower risk of default. Junk bonds are those with a rating of BB and lower, while defaulted bonds have already failed to meet their financial obligations. High-yield bonds are also known as junk bonds and carry higher risk but potentially higher returns.

A Corporate Bond Which Receives a BBB Rating from Standard