SIE practice questionmediumBond Ratings
A bond with a rating of BBB by S&P would be considered:
- AJunk
- BDefaulted
- CInvestment grade✓ Correct answer
- DConvertible
Explanation
Why C — Investment grade
BBB is the lowest investment grade rating by S&P; below BBB would be considered junk (speculative grade). The bond is neither defaulted nor convertible by rating alone.
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