Question 1
Which of the following is a characteristic of corporate bonds?
◦ Rated on a scale from AAAA to FFFF
◦ Used to finance debt over a short period such as six months
◦ Issued as long-term debt securities
◦ Exempt from state tax in the state where the issuing company has its headquarters
Question 2
A(n) ________ corporate bond will pay a ________ return.
◦ lower-rated; higher
◦ higher-rated; higher
◦ lower-rated; lower
◦ unrated; lower