Junk bonds which are rated lower than triple B are also classified as
A. high yield bonds
B. low yield bonds
C. zero floating bonds
D. high floating rate bonds
Answer: Option A
Solution (By Examveda Team)
Junk bonds which are rated lower than triple B are also classified as high yield bonds. A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.This Question Belongs to Management >> International Finance And Treasury
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