Another term for junk bonds is

Question

Quizplus · Accepted Answer

Junk bonds are also commonly known as high-yield bonds because they offer a higher yield than investment-grade bonds but come with a higher risk of default. Choice A, low-risk bonds, is incorrect as junk bonds are considered to be high-risk. Choice B, low-yield bonds, is also incorrect as junk bonds offer a higher yield than investment-grade bonds. Choice D, vulture bonds, is a term that is sometimes used to refer to distressed debt, which may include junk bonds, but it is not a commonly used or widely accepted term for this type of bond.

Another Term for Junk Bonds Is