Which of the Following Bonds Are Considered to Be Default-Risk

question 22

Multiple Choice

Which of the following bonds are considered to be default-risk free?

• A)municipal bonds
• B)investment-grade bonds
• C)U)S. Treasury bonds
• D)junk bonds

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Definitions:

Significant Declines

Significant Declines describe substantial reductions in value, performance, or status, which might indicate urgent issues requiring attention or analysis.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price at or after a certain date.

Fair Market Price

The price of a good or service that is agreed upon by both buyer and seller, under no pressure, in an open and competitive market.

Redeemed

The act of exchanging something, such as a bond or coupon, for value, often for cash or goods.