All else equal, which of the following bonds would you expect to sell for the highest price?
A)A+ bond
B)BBB bond
C)AAA bond
D)BB+ bond

Question

Quizplus · Accepted Answer

The AAA bond is the highest credit rating, indicating the lowest probability of default. This makes it the most desirable to investors and therefore it will sell for the highest price. AAA bond is the highest credit rating and therefore the lowest-risk investment for fixed-income investors. As a result, it commands the highest price in the market.

All Else Equal, Which of the Following Bonds Would You