Multiple Choice
Which of the following statements about junk bonds is FALSE?
A) Given the likelihood of default, it is never profitable to purchase junk bonds.
B) They pay higher interest rates than investment grade bonds due to higher perceived risk.
C) Prior to the 1970s, corporations were unable to issue junk bonds.
D) In October 2016, the average yield on junk bonds was more than twice the average yield on investment grade bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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