The rate that the least risky firms pay on bonds that they issue is the

Question

Quizplus · Accepted Answer

Triple-A corporate bond rate is the rate that the least risky firms pay on bonds that they issue. This rate is considered the benchmark for other corporate bonds and is typically lower than rates paid by firms with lower credit ratings. The prime rate is the rate that commercial banks charge their most credit-worthy customers, the commercial paper rate is the rate that corporations pay to issue short-term debt, and the federal funds rate is the rate at which banks lend and borrow from each other overnight.

The Rate That the Least Risky Firms Pay on Bonds