All of the Following Statements About Junk Bonds Are True

question 85

Multiple Choice

All of the following statements about junk bonds are true EXCEPT

• A)they tend to be underwritten by merchant banks.
• B)their ratings by Moody's is Baa or less.
• C)their ratings by Standard & Poor's is BBB or less.
• D)they are riskier than other bonds.

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Definitions:

Duty To Communicate

An obligation to provide relevant information in a timely and clear manner, especially in agreements or relationships requiring trust.

Duty Of Diligence

A legal obligation requiring a person to exercise reasonable care and attention in their actions or duties.

Breach Of Duty

Failure to meet the responsibilities or uphold the standards of care legally owed by one party to another.

Revoke The Authority

The act of formally withdrawing or cancelling a previously granted power or legal right, usually by the entity that granted it.