Bonds with relatively low risk of default are called ________.
A) zero coupon bonds
B) junk bonds
C) investment grade bonds
D) fallen angels

Question

Quizplus · Accepted Answer

Investment grade bonds are considered to have low risk of default and are rated by credit rating agencies as BBB- or higher. Zero coupon bonds are bonds that are sold at a discount and do not pay periodic interest payments. Junk bonds are bonds that have high risk of default and are rated BB or lower. Fallen angels are bonds that were initially investment grade but have been downgraded to junk status.

Bonds with Relatively Low Risk of Default Are Called ________