Investing

Question 1

Which statements about junk bonds are correct? Choose three correct answers.Junk bonds are considered a high-risk investment.Junk bonds have a bond rating of BB or lower.Junk bonds have a bond rating of BB or higher.Issuers of junk bonds are not likely to fail to pay interest. In the event of bankruptcy, junk bond owners will be paid before stockholders.

Revolt · Accepted Answer

A: Junk bonds are considered a high-risk investment.; B: Junk bonds have a bond rating of BB or lower.; E: In the event of bankruptcy, junk bond owners will be paid before stockholders.

Question 2

What is a reasonable approach to investing in penny stocks?

Revolt · Accepted Answer

C: Treat with caution because they have uncertain rates of return.

Investing Answers

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