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Bonds are assigned ratings that reflect Question 7 options: The value of the rate of return...

Bonds are assigned ratings that reflect

Question 7 options:

The value of the rate of return

The risk/return ratio

The probability of going into default

Restrictive covenants
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Solution Answer: The probability of going into default Explanation: Rating assigned to bond is to aware the investor about the possible risk associated with the particular bonds, it reflects about the chances of going into default. It is standardized. No further explanation require.

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