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According to top rating agencies S&P double-B and other lower grade bonds are classified as

A. development bonds

B. junk bonds

C. compounded bonds

D. discounted bonds

Answer: Option B

Solution(By Examveda Team)

According to top rating agencies S&P double-B and other lower grade bonds are classified as junk bonds. Junk bonds represent bonds issued by companies that are struggling financially and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors.

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