Junk bonds,bonds with a low bond rating,are also known as
A)high-yield bonds.
B)investment grade bonds.
C)high quality bonds.
D)zero-coupon bonds.

Question

Quizplus · Accepted Answer

Junk bonds often offer a high yield (rate of return) to compensate for their higher risk due to their low rating. High-yield bonds are also sometimes called speculative or non-investment grade bonds. B) investment grade bonds and C) high-quality bonds are the opposite of junk bonds, indicating high creditworthiness and a lower risk of default. D) Zero-coupon bonds are a type of bond that does not pay interest regularly, but is sold at a discount and redeemed at face value at maturity.

Junk Bonds,bonds with a Low Bond Rating,are Also Known as