Which of the following statements is correct?
A)Michael Milken pioneered an active high-yield bond market in the late 1970s that provided much needed capital to entrepreneurs and financial innovators.
B)Prior to Milken, the only junk bonds were those issued by once financially stable firms that had fallen on hard times.
C)Milken showed investors that, historically, junk bonds rarely defaulted and offered a very high return to those willing to assume the risk of owning them.
D)All of these statements are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. Michael Milken revolutionized the high-yield bond market by creating an active market that provided capital to entrepreneurs and innovators. He also demonstrated that the risk of default on junk bonds was historically low and that they offered high returns to those willing to invest in them. Before Milken's influence, junk bonds were seen as a last resort for financially troubled companies.

Which of the Following Statements Is Correct