Which of the below statements is TRUE? O a. Frequently, the ability of an issuer to make interest and principal payments is seriously and unexpectediy changed by a natural or industrial accident or some regulatory change. O b The lowest-grade bonds are designated by Moody's by the symbol Aaa and by the other three rating systems by the symbol AA O C Fixed-rate securities are attractive to some institutional investors because they allow them to buy an asset with an income stream that closely matches the floating nature of the income of some of their liabilities. O d. Each rating agency periodicaly publishes a table showing the upgrade and downgrade history of the issues that it rated.
Which of the below statements is TRUE? O a. Frequently, the ability of an issuer to make interest and principal payments is seriously and unexpectediy changed by a natural or industrial accident or some regulatory change. O b The lowest-grade bonds are designated by Moody's by the symbol Aaa and by the other three rating systems by the symbol AA O C Fixed-rate securities are attractive to some institutional investors because they allow them to buy an asset with an income stream that closely matches the floating nature of the income of some of their liabilities. O d. Each rating agency periodicaly publishes a table showing the upgrade and downgrade history of the issues that it rated.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Nhich of the below statements is TRUE?
O a. Frequently, the ability of an issuer to make interest and principal payments is seriously and unexpectedly changed by a naturai or industrial
accident or some regulatory change.
O b. The lowest-grade bonds are designated by Moody's by the symbol Aaa and by the other three rating systems by the symbol AA
O . Fixed-rate securities are attractive to some institutionial investors because they allow them to buy an asset with an income stream that closely
matches the floating nature of the income of some of their liabilities.
O d. Each rating agency periodicalily publishes a table showirig the upgrade and downgrade history of the issues that it rated.
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