Which of the following bond quotes might indicate a bond has a high default risk?
A) GM 6 percent due 11/15 with a current yield of 7.5 percent
B) Cott Beverages 6.5 percent due 09/15 with a current yield of 7.75 percent
C) Eaglecrest Explorations 5.75 percent due 06/15 with a current yield of 7.60 percent
D) Abitibi Price 8.0 percent due 09/15 with a current yield of 9.85 percent
Correct Answer:
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