Which of the Following Statements About Junk Bonds Is False

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) A popular measure of junk bond yields reached a record low in 2012.