Bonds that are rated in the D category are of higher quality than bonds that are rated in the A category.

Question

Quizplus · Accepted Answer

This statement is false. Bond ratings indicate the creditworthiness of the issuer, with AAA being the highest rating and D being the lowest. Bonds in the D category are considered "default" and indicate that the issuer has already defaulted on their payments, making them the lowest quality bonds. A bonds are considered high-quality with a low risk of default.

Bonds That Are Rated in the D Category Are of Higher