Question

The credit rating for the United States was recently downgradedfrom AAA to AA+ for the first time in history. We learn that BondRating Criteria is very similar to the process that you are usingfor your Projects -- financial ratios and qualitative factors. Howimportant are bond ratings to the general public? Remember whilesome bonds find their way into mutual fund portfolios most bondsare traded by financial institutions and governments. As you'reformulating your answer consider if you would be willing to accepta bond with a lower rating that has the possibility of paying ahigher return.