What is usually the relationship between a bond's rating and the interest rate a company pays to buyers?

A. The rating is the same as the rate.

B. The higher the rating, the lower the rate.

C. There is no relationship.

D. The higher the rating, the higher the rate

Question

Social Studies

Maximillian

19 March, 15:11

What is usually the relationship between a bond's rating and the interest rate a company pays to buyers?

A. The rating is the same as the rate.

B. The higher the rating, the lower the rate.

C. There is no relationship.

D. The higher the rating, the higher the rate

+2

Answers (2)

Know the Answer?

Sandra Atkins · Answer 1

The correct answer is B. The higher the rating, the lower the rate.

This means that the company pays less to the buyers if the rate is lower, or that the buyer has a higher interest rate if the bond's rating is lower.

Luka Oconnell · Answer 2

The answer would be B).

What is usually the relationship between a bond's rating and the interest rate a company pays to buyers?A. The rating is the same as the rate.B. The higher the rating, the lower the rate.C. There is no relationship.D. The higher the rating, the higher the rate

What is usually the relationship between a bond's rating and the interest rate a company pays to buyers?

A. The rating is the same as the rate.

B. The higher the rating, the lower the rate.

C. There is no relationship.

D. The higher the rating, the higher the rate