A bond with which of the following credit ratings would be considered investment grade? I. AA
II. A
III. BBB
IV. BB
A)I and II only
B)I, II, and III only
C)I only
D)All of the above are investment-grade bonds.

Question

Quizplus · Accepted Answer

Investment grade bonds are those with credit ratings of BBB- or higher. Therefore, options I, II, and III are all investment grade, while option IV is below investment grade. Investment grade bonds are typically rated AAA, AA, A, or BBB by credit rating agencies. Therefore, options I, II, and III are considered investment grade while option IV is considered below investment grade or "junk" status.

A Bond with Which of the Following Credit Ratings Would