Which of the Following Statements Regarding Junk Bonds Is True

Multiple Choice

Which of the following statements regarding junk bonds is true?

A) Junk bonds typically offer lower yields to maturity than investment-grade bonds.
B) Junk bonds have higher priority in bankruptcy than preferred stock.
C) Junk bonds offer no coupon payments to investors.
D) Junk bonds are typically defined as bonds with default probabilities of 25% or higher.