Bond Rating Quiz

1. Aaa is the highest possible bond rating from Moody's.

2. A bond with a rating of BBB is considered junk.

3. Bonds rated Ba or B are considered to have high risk.

4. A rating of CCC or lower from Standard & Poor's is considered investment grade.

5. Bonds rated D are in default.

6. Bonds rated Aaa have the highest risk.

7. The lowest investment-grade bond rating is Baa from Moody's and BBB from Standard & Poor's.

8. Bonds rated Caa by Moody's are classified as investment grade.

9. The highest bond rating from Standard & Poor's is AAA.

10. Bonds rated AA by Standard & Poor's are considered riskier than those rated A.