Which One of the Following Is Another Name for a Junk

question 43

Multiple Choice

Which one of the following is another name for a junk bond?

• A)high-yield bond
• B)convertible bond
• C)private placement bond
• D)subordinated bond
• E)called bond

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Definitions:

Cash Flow

Cash Flow refers to the net amount of cash being transferred into and out of a business, indicating the company's liquidity over a certain period.

Precautionary Need

The motive to hold cash or assets to safeguard against unexpected emergencies or transactions.

Speculative Need

A financial concept where individuals or businesses hold cash or assets in speculation of market changes, expecting to profit from fluctuations in prices or exchange rates.

Transactions Need

encapsulates the necessity for exchanges or trades to occur within an economy or market for goods, services, financial assets, or currencies.