The quality ratings assigned to bonds reflect the:?
A. ?probability of their face value increasing to above their market value.
B. ?probabilities of their going into default.
C. ?probabilities of different returns on their sinking fund investments.
D. ?probabilities of their maturity value becoming lower than the principal value.
E. ?probabilities of their being recalled by the exercise of a call provision.
Answer: B
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Fill in the blank(s) with the appropriate word(s).
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What will be an ideal response?
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