Which of the following types of bonds offer relatively high rates of interest because they have higher inherent risks?

A) Secured bonds
B) Serial bonds
C) Unsecured bonds
D) Junk bonds
E) Floating-rate bonds

Question

Th?o My Lê Ph??ng · Accepted Answer

Final Answer : D, Explanation :  Junk bonds offer relatively high rates of interest because they are issued by entities that are considered to be at a higher risk of defaulting on their debt obligations. This higher risk is compensated for by the higher interest rates offered to investors.

Which of the following types of bonds offer relatively high rates of interest because they have higher inherent risks?

A) Secured bonds
B) Serial bonds
C) Unsecured bonds
D) Junk bonds
E) Floating-rate bonds

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following types of bonds offer relatively high rates of interest because they have higher inherent risks?A) Secured bondsB) Serial bondsC) Unsecured bondsD) Junk bondsE) Floating-rate bonds

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following types of bonds offer relatively high rates of interest because they have higher inherent risks?

A) Secured bonds
B) Serial bonds
C) Unsecured bonds
D) Junk bonds
E) Floating-rate bonds