Junk Bonds Are High Yield Bond Bonds Rated Below

question 72

Multiple Choice

Junk bonds are high yield bond bonds rated below

• A) BBB.
• B) BB.
• C) B.
• D) CCC.
• E) CC.

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Definitions:

British Security

A financial instrument issued in the UK that represents either equity in a company, debt obligations, or other rights to ownership or profit.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date.

International Fisher Effect

A theory stating that the difference in nominal interest rates between two countries is equal to the expected change in their exchange rates.

Inflation Rate

The pace at which prices for general goods and services escalate, causing a decline in the ability to purchase.