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    Exam 8: The Risk Structure of Interest Rates: Defaults, Prepayments, Taxes, and Other Rate-Determining Factors
  5. Question
    Exactly What Are Junk Bonds? Why Are They Issued? How
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Exactly What Are Junk Bonds? Why Are They Issued? How

Question 34

Question 34

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Exactly what are junk bonds? Why are they issued? How does their actual yield compare to their degree of default risk? Why do you think this is so?

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Junk bonds are long-term debt securities...

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