A "Junk Bond" Is a Bond with a

question 55

Multiple Choice

A "junk bond" is a bond with a

• A)low yield to maturity.
• B)value of zero.
• C)low face value, but high coupon rate.
• D)high default risk.
• E) very low maturity.

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Definitions:

Heuristic

A mental shortcut or rule of thumb that simplifies decision making, not guaranteed to be optimal, perfect, or rational, but useful for making quick decisions.

Subgoal

A smaller, intermediate objective set as a step towards achieving a larger goal.

Algorithm

A step-by-step procedure or formula for solving a problem.

Category

A class or division of people or things regarded as having particular shared characteristics.