Bond portfolios with some bonds rated below Baa by Moody's or BBB by Standard and Poor's, available for investors desiring high return and willing to incur high risk, are called ____ funds.

Question

Quizplus · Accepted Answer

Junk bond funds invest in high-yield bonds that are rated below investment grade by rating agencies like Moody's or Standard and Poor's. These bonds offer a higher return but also carry a higher risk of default.

Bond Portfolios with Some Bonds Rated Below Baa by Moody's