A bond rated BBB by S&P or Baa by Moody's or better is classed as:
AInsurance grade
BIndustrial grade
CInterest grade
DInvestment grade
Answer & Solution
Correct answer: D. Investment grade
1. Those ratings mark the dividing line.
2. At or above it, the market treats the issuer as stable.
3. Such a bond is investment grade.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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