A. liquidity, market, and default risk. B. liquidity, interest rate, and default risk. C. default risk only. D. interest rate, inflation rate, and default risk. E. default and liquidity risks.
Bond ratings classify bonds based on default risk.
Explanation:
Bond ratings classify bonds based on default risk. These ratings range from AAA to DDD for Standard and Poor's and from AAA to C for Moody's. Bonds with lower ratings are considered speculative and often referred to as high-yield or junk bonds.
