Which of the Following Statements Is True of Junk Bonds

question 12

Multiple Choice

Which of the following statements is true of junk bonds?

• A)They are short-term liabilities.
• B)They are a sequence of small bond issues of progressively longer maturity.
• C)They have low inherent risks.
• D)They are typically associated with companies in good financial health.
• E)They offer relatively high rates of interest.

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