SIE practice questioneasyBond Ratings
Which of the following Moody’s ratings indicate the highest credit quality?
- AAaa✓ Correct answer
- BAa
- CA
- DBaa
Explanation
Why A — Aaa
Aaa is Moody’s highest rating, signifying the lowest credit risk. Aa, A, and Baa are progressively lower ratings.
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 bond with a $1,000 par value and a 6% coupon is selling for $1,050. What is its current yield?
- Which of the following is a government-sponsored enterprise, and its securities are NOT fully backed by the U.S.…
- Which statement is TRUE of zero-coupon bonds?
- Which Treasury security is always issued at a discount and does not pay periodic interest?