Investing Answers

1 verified answers1 views
1
Free Preview

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.

A
Junk bonds are considered a high-risk investment.
B
Junk bonds have a bond rating of BB or lower.
C
Junk bonds have a bond rating of BB or higher.
D
Issuers of junk bonds are not likely to fail to pay interest.
E
In the event of bankruptcy, junk bond owners will be paid before stockholders.

Did you find these answers helpful?