Question

In: Finance

Moody’s rating of this bond is Aa2 for this bond. Assume that GE’s bond rating is...

Moody’s rating of this bond is Aa2 for this bond. Assume that GE’s bond rating is A. JEA’s rating is B+. Treasury bond’s rating is AAA. Rank the risk of the four bonds from low to high.

  1. WMT, GE, Treasury, JEA
  2. WMT, Treasury, JEA, GE
  3. Treasury, WMT, GE, JEA
  4. Treasury, GE, WMT, JEA

Solutions

Expert Solution

Attached are the different credit ratings codes and classes

Based on this the lower risk to higher risk should flow like - AAA > Aa2 > A > B+

Therefore the answer is - C.) Treasury, WMT, GE, JEA


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