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Their experts investigate a company's scenario and determine a bond rating for the company. Every rating service has its own formula for determining risk and its own kind of ranking scale. Usually, rating scales are defined in letter grades, where an AAA score designates a safe, low-risk bond, and a D score designates a high-risk bond.
government bonds, are usually low-yield bonds. You can depend on getting a payment but that payment will be little. why does spectre finance terrorism in james bond. On the other side of the spectrum, you have what's not-so-affectionately referred to as, which are low-rated, high-risk bonds. In order to entice investors into buying these risky junk bonds, the providing business guarantee high yields. http://lukasmfcv922.tearosediner.net/7-simple-techniques-for-which-of-the-following-can-be-described-as-involving-direct-finance |
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