SIE Exam Question 911: Answer and Explanation

Question: 911

An investment-grade bond is one that is rated __________ or higher by the Standard & Poor's bond rating service. A high-yield bond is rated __________ or lower by Standard & Poor's.

• A. BBB, BB
• B. BBB+, BB-
• C. BBB-, BB+
• D. BB, BBB

Correct Answer: C

Explanation:

An investment-grade bond is one that is rated BBB- or higher by the Standard & Poor's bond rating service. A high-yield bond is rated BB+ or lower by Standard & Poor's.