FINRA Series 6

Category - Series 6

Which of the following bonds would not be considered investment grade?
  1. a municipal bond with a BB rating.
  2. a corporate bond with a BBB rating.
  3. a general obligation bond with an AA rating.
  4. a debenture with an A rating.
Explanation
Answer: A - A municipal bond with a BB rating would not be considered investment grade.
Regardless of whether a bond is issued by a state or local government or a corporation, to be considered investment grade it must be rated BBB or higher.
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