Question: Bonds are rated on a scale from AAA to D. What does it mean if a bond is rated D? The issuing company has no

Bonds are rated on a scale from AAA to D. What does it mean if a bond is rated D? The issuing company has no problems and strong financials Interest payments are likely to be higher than AAA 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 low to reflect the safety and strength of the issuing company

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