Junk bonds usually yield lower returns than investment-grade bonds due to their speculative feature.

Name: Junk bonds usually yield lower returns than investment-grade bonds due to their speculative feature.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

Junk bonds, also known as high-yield bonds, typically offer higher yields than investment-grade bonds to compensate investors for the higher risk involved. This means that junk bonds usually yield higher returns than investment-grade bonds.

Junk Bonds Usually Yield Lower Returns Than Investment-Grade Bonds Due