Examlex
A listener's summary of a speaker's words shows that the listener correctly understood the speaker's message.Which of the following must be true?
Junk Bonds
High-yield but high-risk bonds issued by companies or entities with lower credit ratings, indicating a higher risk of default.
Zero Coupon Bonds
Pay no coupons at all, but are offered at a substantial discount below their par value and hence provide capital appreciation rather than interest income. Sometimes referred to as “stripped bonds.”
Callable Bond
A bond that can be redeemed by the issuer before its maturity date at a specified call price.
Income Bonds
Bonds that pay interest only when the issuer has sufficient earnings, providing a variable income stream based on the issuer's profitability.
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