Asked by Robyia Spriggins on Jun 24, 2024

verifed

Verified

______ is the rating given to income bonds on which no interest is being paid.

A) F
B) D
C) C
D) A
E) B

Income Bonds

Bonds that pay interest only when the issuer has sufficient earnings, making them riskier than regular bonds that guarantee interest payments.

Rating

A rating refers to an evaluation or assessment of something's quality, quantity, or a combination thereof, often used in financial contexts to gauge the creditworthiness of entities.

Interest

The cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage rate.

  • Understand the importance of bond ratings and their impact on investment quality.
verifed

Verified Answer

NN
Naturally NahlahJun 28, 2024
Final Answer :
B
Explanation :
Income bonds on which no interest is being paid are rated 'D', indicating a default or failure to make interest payments.