Which of the following statements are correct in respect to high- yield bonds?
I. They are junk bonds with highly unpredictable rates of return.
II. The issuing corporation usually has an excessive amount of debt.
III. They possess a high level of default and market risk.
IV. They are often subordinated debentures.

Question

Which of the following statements are correct in respect to high- yield bonds? 
I.	They are junk bonds with highly unpredictable rates of return.
II.	The issuing corporation usually has an excessive amount of debt.
III.	They possess a high level of default and market risk.
IV.	They are often subordinated debentures.

Quizplus · Accepted Answer

High-yield bonds, also known as junk bonds, have unpredictable returns, are issued by corporations with high debt, possess high default and market risk, and are often subordinated debentures.

Which of the Following Statements Are Correct in Respect to High-