Difference between investment grade debt and junk bonds

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Reference no: EM131560360

Provide a comprehensive description of the Credit Rating system of Standard & Poors’ and Moody’s. What type of risk are these ratings supposed to represent? Explain the difference between Investment Grade Debt and Junk Bonds. Of course, lower rated bonds tend to bear higher rates. But, describe how the effect of legal and conceptual arrangements in the United States affect the rates paid on these two classes of bonds.

Reference no: EM131560360

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