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Their specialists investigate a company's situation and determine a bond rating for the business. Every ranking service has its own formula for determining danger and its own sort of score scale. Generally, ranking scales are defined in letter grades, where an AAA rating designates a safe, low-risk bond, and a D ranking designates a high-risk bond.
federal government bonds, are usually low-yield bonds. You can depend on getting a payment but that payment will be small. in order to finance a new toll bridge. 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 attract financiers into buying these dangerous scrap bonds, the issuing companies promise high yields. http://jeffreyingo316.hpage.com/post1.html |
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