Asked by
Charles Huang
on Dec 02, 2024
Verified
Junk bonds pay high interest rates and are issued by even the most solid companies.
Junk Bonds
High-risk, high-interest bonds issued by companies or entities with lower credit ratings, considered to be below investment grade.
Interest Rates
The cost of borrowing money or the return earned from lending money, usually expressed as a percentage.
Solid Companies
Firms with strong financial health, stable earnings, and a good history of consistent performance.
- Recognize the differences and purposes of various types of bonds such as junk bonds, secured/unsecured bonds, and registered securities.
Verified Answer
LM
Learning Objectives
- Recognize the differences and purposes of various types of bonds such as junk bonds, secured/unsecured bonds, and registered securities.
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