Junk bonds are bonds with
A)AAA or Aaa ratings.
B)BBB or Baa ratings.
C)BB or Ba ratings or lower.
D)D rated bonds.

Question

Quizplus · Accepted Answer

Junk bonds are bonds with BB or Ba ratings or lower, indicating a higher risk of default. They are also known as high yield bonds because they offer higher interest rates to compensate for the higher risk. AAA or Aaa rated bonds are considered to be the safest, while D rated bonds are in default. BBB or Baa rated bonds are considered to be investment grade bonds with a moderate level of risk.

Junk Bonds Are Bonds with