Which of the following is another name for junk bonds?
A) high-risk bonds.
B) high-price bonds.
C) high-yield bonds.
D) None of the options.

Question

Quizplus · Accepted Answer

Junk bonds are also known as high-yield bonds because they offer a high rate of return to compensate for their higher risk. A is partially correct but not the most common name for these bonds. B is incorrect as junk bonds are typically issued at a discount to their face value rather than at a high price. D is incorrect as there is a specific name for these bonds.

Which of the Following Is Another Name for Junk Bonds