Which of the following bonds carry significant risk that the issuer will not make current or future payments?
A) Credit quality risk bonds
B) Interest rate risk bonds
C) Liquidity rate risk bonds
D) Junk bonds

Question

Quizplus · Accepted Answer

Junk bonds carry significant risk that the issuer will not make current or future payments. Junk bonds are high-yield, high-risk debt securities issued by companies or entities that are perceived to be at a greater risk of default. They are often rated below investment grade and carry a higher default risk than investment-grade bonds. As such, investing in junk bonds carries a higher level of risk than investing in other types of bonds.

Which of the Following Bonds Carry Significant Risk That the Issuer