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CFA Level 1
Fixed Income

Identifying Investment-Grade Credit Rating

Very Easy Fixed Income Securities Credit Ratings

Credit ratings are assessments of the creditworthiness of a borrower, typically provided by credit rating agencies. These ratings help investors determine the risk associated with investing in a particular fixed income security. Common rating categories include investment grade and non-investment grade classifications. A higher rating indicates lower risk, while a lower rating indicates higher risk.

Which of the following credit ratings signifies an investment-grade bond?

Hint

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% Correct93%