n NISM Certifications
X NISM Series X
Medium

Corporate bonds with high credit rating ________.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Have higher coupon

  2. B

    Have higher face value

  3. Have lower default risk

    Correct answer

  4. D

    All of the above

Why this is the answer

High credit ratings indicate lower risk of default, though coupons and face value are not necessarily higher.

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