Which of the following statement about bond ratings is TRUE?
A. Bond ratings are typically paid for by a company’s bondholders.
B. Bond ratings are based solely on information acquired from sources other than the bond issuer.
C. Bond ratings represent an independent assessment of the credit-worthiness of bonds.
D. None of the given options.
Answer:B
Which of the following statement about bond ratings is TRUE?
A. Bond ratings are typically paid for by a company’s bondholders. B. Bond ratings are based solely on information acquired from sources other than the bond issuer. C. Bond ratings represent an independent assessment of the credit-worthiness of bonds. D. None of the given options.