Bonds with Relatively Low Risk of Default Are Called ________

question 23

Multiple Choice

Bonds with relatively low risk of default are called ________.

• A) zero coupon bonds
• B) junk bonds
• C) investment grade bonds
• D) fallen angels

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Definitions:

Borrowing

This is the act of obtaining funds from a lender under the agreement to pay back the principal amount along with interest.

Repurchase

The act of buying back goods or securities that were previously sold, often referring to a company buying back its own shares.

Equity Firm

A company that invests its clients' funds in businesses, typically acquiring significant control or full ownership.

Borrowing

The process of obtaining funds from lenders with a promise to repay, generally with interest, at a future date.