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Discuss bond credit ratings. What are the two basic categories of bonds according to their credit...

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Finance

  1. Discuss bond credit ratings. What are the two basic categoriesof bonds according to their credit rating (you do not need to referto specific ratings) and what is the credit spread?

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Bond Credit ratings are simply put the credit ratings assigned by Credit Rating Agencies Institutions which signify the safety investment level security of the bond These credit ratings are given by the rating agencies after taking into consideration complete financials of the company under consideration The credit ratings hence determine the interest rate which would be offered by the particular bond ie Bonds with higher credit rating    See Answer
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Discuss bond credit ratings. What are the two basic categoriesof bonds according to their credit rating (you do not need to referto specific ratings) and what is the credit spread?

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