Asked by
Kiley Pruitt
on Dec 02, 2024
Verified
Bond ratings are the primary measure of default risk.
Bond Ratings
Assessments by rating agencies that evaluate the creditworthiness of a bond issuer and the likelihood that it will meet its obligations.
Default Risk
The likelihood that a borrower will fail to meet the obligations of a debt agreement.
- Comprehend the importance and impact of bond ratings on corporations and their ability to raise capital.
Verified Answer
CF
Learning Objectives
- Comprehend the importance and impact of bond ratings on corporations and their ability to raise capital.