Bonds to fuel their expansion overseas

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Reference no: EM131189123

Loan Money To Us, Inc. has issued $10,000,000 of bonds to fuel their expansion overseas. Their bonds were given an "A" rating by both Standard & Poor & Moody's. Which of the following answers are true about their bonds? You may select as many or as few answers as you would like.

a) These bonds are "investment grade"

b) Their coupon payments are normally less than more risky bonds.

c) Their high rating means investors think Loan Money To Us have better growth prospects than their competitors.

d) Their bonds are supposed to have less default risk than bonds rated as "speculative".

e) These bonds are more risky than a bond with a "Aaa" or "AAA" rating.

Reference no: EM131189123

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