Final answer:
Bond ratings, which assess the risk level of bonds and influence investor decisions, are determined by credit rating agencies and incorporate various factors beyond just a company's financial performance.
Step-by-step explanation:
Based on the understanding of bond ratings and their criteria, the accurate statement is that bond ratings are determined by credit rating agencies. Bond ratings are indeed very important for investors as they provide insight into the risk level associated with a bond, affecting the rate of return.
Moreover, bond ratings take into account not only financial performance of a company but also other factors like previous borrowing history, ability to repay loans, and overall economic conditions. Different types of bonds can have distinct ratings; for instance, corporate bonds generally offer higher yields to compensate for higher risk compared to government bonds such as 10-year Treasury notes.