What role do the credit rating agencies play in a bond issue?
What role do the credit rating agencies play in a bond issue?
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Answer by nick w
a bonds rating is basically showing the risk of it actually being paid, if the bond has a lower rating there is a higher chance of it not being paid but should have a higher coupon rate. the higher the bond rating the better chance of it getting paid, so there will be a lower coupon rate.
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