Which bond is most likely to default?
A) a junk bond
B) a municipal bond
C) a federal government bond
D) a corporate bond issued by Bell Canada

Name: Which bond is most likely to default? A) a junk bond B) a municipal bond C) a federal government bond D) a corporate bond issued by Bell Canada
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Junk bonds are given to companies with lower credit ratings and are considered to be high-risk investments. As a result, their default rates are much higher compared to other bonds.

Which Bond Is Most Likely to Default