Manning,Inc.originally issued bonds that were rated investment grade.These bonds have now been downgraded to junk status.Which one of the following terms applies to this situation?

Question

Quizplus · Accepted Answer

The term "fallen angel" applies to bonds that were originally rated investment grade but have been downgraded to speculative or junk status. This term is often used by investors to describe bonds that were once considered safe investments but have now become riskier.