SIE practice questioneasyBond ratings
A bond rated 'BBB' by Standard & Poor's is considered:
- AInvestment grade✓ Correct answer
- BBelow investment grade
- CSpeculative grade
- DDefaulted
Explanation
Why A — Investment grade
A 'BBB' rating is the lowest investment grade rating by S&P. Bonds rated 'BB' or below are considered speculative (junk). Defaulted bonds are those in payment default.
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