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COMM_V 298 101 102 103 2025W1 COMM 298 2025 Winter Term 1: Midterm Extra Practice

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Rank these bonds in order from most secure (investment grade) to least secure (non-investment grade/ junk) based on ratings from Standard & Poor's (S&P): Tesla Bond (BB+) 4 Government of Canada Bond (AAA) [ Select ] 2 4 1 3 Netflix Bond (BBB) [ Select ] 4 3 2 1 Walmart Bond (AA) 2

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The task asks us to rank these bonds from most secure (investment grade) to least secure (non-investment grade/junk) using S&P ratings, based on the issuer and the given ratings. First, recall the S&P rating hierarchy relevant here: AAA is the highest, followed by AA, then BBB, and below BBB begins the non-investment grade (junk) category with BB and lower. Within this framework, a higher rating means lower credit risk and thus greater security for bondholders. Option by option analysis: - Tesla Bond (BB+): This rating places Tesla in the no......Login to view full explanation

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