SIE practice questionhardBond ratings
A bond with a 'C' rating is considered:
- AInvestment grade
- BSpeculative or junk✓ Correct answer
- CTax-exempt
- DBacked by the U.S. government
Explanation
Why B — Speculative or junk
'C' ratings indicate junk or speculative grade – very high risk. Investment grade is BBB/Baa or higher; tax status and U.S. backing are unrelated to credit rating.
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