Which of the following statement about bond ratings is TRUE?
ABond ratings are based solely on information acquired from sources other than the bond issuer.
BNone of the given options
CBond ratings are typically paid for by a company’s bondholders.
DBond ratings represent an independent assessment of the credit-worthiness of bonds.
Correct answer
D. Bond ratings represent an independent assessment of the credit-worthiness of bonds.
Explanation
Bond ratings represent an independent assessment of the credit-worthiness of bonds. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.