A higher investment-grade debt rating is usually associated with A. Lower cumulative default rates B. Wider...

A higher investment-grade debt rating is usually associated with

A. Lower cumulative default rates

B. Wider spreads to market benchmarks

C. A higher one-year transition ratee

D. More frequent negative outlooks

Solutions

Expert Solution

Option A is correct

Lower cumulative default rates

Investment grade bonds generally have lower yield due to low risk of default on them

jeff jeffy answered 2 years ago

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