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Investment-grade bonds are especially popular because many commercial banks and pension funds:
AMay only trade options
BMay only trade those
CMay only trade shares
DMay only trade metals
Answer & Solution
Correct answer: B. May only trade those
1. Rules restrict what they may hold.
2. Lower grades are shut out.
3. They may only trade investment-grade bonds.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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