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Effect the rates paid on these two classes of bonds

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Reference no: EM132061064

Provide a comprehensive description of 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 effects of legal and contractual arrangements in the United States effect the rates paid on these two classes of bonds.

Reference no: EM132061064

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