Asked by
Elena Salvatore
on Nov 14, 2024
Verified
Which of the following credit ratings is regarded as speculative or indicative of a high degree of risk?
A) R1
B) R2
C) R3
D) R4
Credit Ratings
Assessments of the creditworthiness of borrowers, ranging from governments to private enterprises, indicating their ability to repay borrowed money.
Speculative
Involving financial transactions with a high risk of loss but also the potential for significant gains, often based on future expectations.
- Recognize the procedures and rationales behind valuing bonds in the market, including the effects of interest rates on bond pricing.
Verified Answer
KK
Learning Objectives
- Recognize the procedures and rationales behind valuing bonds in the market, including the effects of interest rates on bond pricing.