Which of the following statements regarding bonds and loans is correct?

Bonds are typically issued by corporations or governments to raise funds and come with specific terms that often include the payment of interest and the return of principal upon maturity. One key aspect of bonds is that they are rated by various credit rating agencies, which assess the creditworthiness of the issuer. These credit ratings help investors evaluate the risk associated with purchasing a bond, guiding their investment decisions.

While it is true that loans can have their own forms of risk assessments and terms, they generally do not carry credit ratings in the same way bonds do. Loans are usually held by banks or private lenders and are subject to different measures of evaluation. Therefore, the presence of credit ratings for bonds stands out as a distinctive feature that supports this particular statement.

The other options may contain aspects of truth in various contexts, but they do not reflect the distinctive characteristics of bonds and loans as accurately as the correct statement concerning credit ratings.