So-Called Fallen Angels Differ from Junk Bonds in That

question 122

Multiple Choice

So-called fallen angels differ from junk bonds in that

• A)junk bonds refer to newly issued bonds with low credit ratings,whereas fallen angels refer to previously issued bonds that have had their credit ratings fall below Baa.
• B)junk bonds refer to previously issued bonds that have had their credit ratings fall below Baa,whereas fallen angels refer to newly issued bonds with low credit ratings.
• C)junk bonds have ratings below Baa,whereas fallen angels have ratings below C.
• D)fallen angels have ratings below Baa,whereas junk bonds have ratings below C.

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Definitions:

GAAP

A set of widely accepted accounting norms and standards, referred to as Generally Accepted Accounting Principles, for the preparation of financial statements.

Line Positions

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