____ bonds are long-term,high-risk,high-interest-rate corporate (or municipal) IOUs issued by companies (or municipalities) with poor or no credit ratings.

Question

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Junk bonds are also known as high-yield or speculative bonds, and they have a high risk of default because they are issued by companies or municipalities with poor credit ratings. These bonds usually offer high-interest rates to compensate investors for the higher risk involved. Municipal bonds (B) are issued by local governments to finance public projects and are usually considered lower risk due to the backing of the government. Zero-coupon bonds (C) are bonds that are sold at a discount to their face value and do not pay any interest until maturity. Investment-grade bonds (D) are issued by companies or municipalities with good credit ratings and have a lower risk of default.

____ Bonds Are Long-Term,high-Risk,high-Interest-Rate Corporate (Or Municipal) IOUs Issued by Companies