The yield to maturity on a junk bond ________ investors' required return.
A) equals
B) overstates
C) preempts
D) understates
E) None of the above

Name: The yield to maturity on a junk bond ________ investors' required return. A) equals B) overstates C) preempts D) understates E) None of the above
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The yield to maturity on a junk bond often overstates investors' required return due to the higher risk of default associated with junk bonds, which may not be fully captured in the yield calculation.

The Yield to Maturity on a Junk Bond ________ Investors