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.