Junk Bonds Are Offered at Higher Interest Rates Than Government

question 331

True/False

Junk bonds are offered at higher interest rates than government bonds or corporate bonds with good ratings.

---

Definitions:

Net Income

Net income represents the total earnings of a company after all expenses and taxes have been deducted from total revenue.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Days in Inventory

A financial metric indicating the average number of days a company holds inventory before selling it.

Cost of Goods Sold

Direct expenditures associated with the process of producing goods for sale by a company, which include materials and labor.