SIE practice questioneasyBond Ratings
Which bond rating represents the highest credit quality?
- ABBB
- BAA
- CB
- DAAA✓ Correct answer
Explanation
Why D — AAA
AAA is the highest rating assigned by most agencies, indicating exceptional credit quality. AA and BBB are lower; B is considered speculative.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Debt Securities questions
- A 6% coupon bond with a current market price of $900 has a current yield of:
- Which risk is most associated with Collateralized Mortgage Obligations (CMOs)?
- An investor buys a 5% bond at 95, with 5 years to maturity. Which yield will be highest?
- Which of the following is NOT a government-sponsored enterprise (GSE) that issues agency bonds?