Briefly Describe the Two Different Types of Junk Bonds (High-Yield

question 113

Essay

Briefly describe the two different types of junk bonds (high-yield bonds).

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, causing consumers to substitute away from more expensive goods towards cheaper ones.

Income Effect

The effect of income changes on the amount of a good or service that is demanded by a person or within an economy.

Compact Discs

Optical storage media used for storing digital data, including music, software, and other information.

First Class

The highest quality of service or seating available, typically offering more space, comfort, and amenities, often found in transportation and accommodations.