Which of the following type of bonds are high-risk, high-return bonds that were often used to finance mergers and acquisitions in the 1980s?

Question

Quizplus · Accepted Answer

Junk bonds, also known as high-yield bonds, are considered high-risk as they are issued by companies with low credit ratings or none at all. They offer higher returns to investors who are willing to take on the risk. In the 1980s, they were frequently used to finance mergers and acquisitions, leading to increased scrutiny and regulation of the market. Takeover bonds and venture capital bonds are not common terms, while discount bonds typically refer to bonds sold below their face value.

Which of the Following Type of Bonds Are High-Risk, High-Return