Use the information for the question(s) below.
-The above information is for a corporate bond issued by the Markel Corporation. What sort of bond is this?
A) a high-risk bond
B) an investment grade bond
C) a speculative bond
D) a high-yield bond

Question

Use the information for the question(s) below. 
-The above information is for a corporate bond issued by the Markel Corporation. What sort of bond is this?
A) a high-risk bond 
B) an investment grade bond 
C) a speculative bond 
D) a high-yield bond

Quizplus · Accepted Answer

The term "investment grade" typically refers to bonds that have a credit rating of BBB- or higher by Standard & Poor's, or Baa3 or higher by Moody's. Since the given information does not provide any credit rating for the bond, we cannot definitively conclude its credit quality. However, among the given answer choices, the only option that suggests a relatively safer investment is B - an investment grade bond. Therefore, B seems to be the best choice.

Use the Information for the Question(s) Below