Question
A bond is considered investment grade if its credit
rating is ________ by Standard & Poor's or _________by Moody's.Solution
A bond is considered investment grade or IG if its credit rating is BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's. Generally they are bonds that are judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in them. Bonds of on-investment grades are called junk bonds and they offer higher yield.
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17, 18, 22, 31, 47, ___
