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Answer: Bond C carries an S&P rating of BBB and a Moody's rating of Baa.
## Explanation Based on the credit rating table provided: **Investment Grade Ratings:** - S&P: AAA, AA, A, BBB - Moody's: Aaa, Aa, A, Baa **Speculative Grade Ratings:** - S&P: BB, B, CCC, CC, C, D - Moody's: Ba, B, Caa, Ca, C, D **Analysis of each bond:** - **Bond A**: S&P BB (speculative) + Moody's Baa (investment grade) = Only 1 investment grade rating ❌ - **Bond B**: S&P BBB (investment grade) + Moody's Ba (speculative) = Only 1 investment grade rating ❌ - **Bond C**: S&P BBB (investment grade) + Moody's Baa (investment grade) = 2 investment grade ratings ✅ Therefore, only Bond C meets the requirement of having investment grade ratings from at least two recognized bond rating agencies.
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You are considering an investment in one of three different bonds. Your investment guidelines require that any bond you invest in carry an investment grade rating from at least two recognized bond rating agencies. Which, if any, of the bonds listed below would meet your investment guidelines?
A
Bond A carries an S&P rating of BB and a Moody's rating of Baa.
B
Bond B carries an S&P rating of BBB and a Moody's rating of Ba.
C
Bond C carries an S&P rating of BBB and a Moody's rating of Baa.
D
None of the above.