Question: Bonds are rated on a scale from AAA to D. What does it mean if a bond is rated AAA? The issuing company has lots

Bonds are rated on a scale from AAA to D. What does it mean if a bond is rated AAA? The issuing company has lots of problems and weak financials Interest payments are likely to be higher than D bonds to reflect the risk of the issuing company The issuing company is backed by the full faith of the federal government Interest payments are likely to be lower than D bonds to reflect the safety and strength of the issuing company

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