n NISM Certifications
NSM General NISM
Medium

Which of the following has higher credit risk?

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Bond rated BBB

    Correct answer

  2. B

    Bond rated AAA

  3. C

    Bond rated A

  4. D

    All of them have same credit risk

Why this is the answer

Lower credit ratings (e.g., BBB) indicate higher credit risk compared to AAA or A rated bonds.

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