What Positive-Sounding Term Do Bond Salesmen Use for Noninvestment-Grade Bonds

question 88

Multiple Choice

What positive-sounding term do bond salesmen use for noninvestment-grade bonds?

• A) prime bonds
• B) high-yield securities
• C) select bonds
• D) select class securities
• E) AAA bonds

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Definitions:

Probability Distribution

The function that describes the likelihood of obtaining the possible values that a random variable can take.

Likelihood of Occurrence

Likelihood of occurrence refers to the probability that a given event will happen, often used in statistics to estimate outcomes.

Parameter

A numerical characteristic that describes a statistical population; it's a fixed value, though often unknown.

Sampling Distribution

The probability distribution of a statistic based on a large number of samples or simulations.