Bonds with relatively low risk of default are called
A) zero coupon bonds.
B) junk bonds.
C) investment-grade bonds.
D) none of the above.

Question

Quizplus · Accepted Answer

Investment-grade bonds are considered to have a relatively low risk of default compared to other types of bonds. Zero coupon bonds do not pay regular interest and may have a higher risk of default, while junk bonds are considered to have a high risk of default. Therefore, option C is the best choice for this question.

Bonds with Relatively Low Risk of Default Are Called