Which of the Following Statements About Junk Bonds Is False

question 28

Multiple Choice

Which of the following statements about junk bonds is false?

• A)Given the likelihood of default, it is never profitable to purchase junk bonds.
• B)They pay higher interest rates than investment grade bonds due to higher perceived risk.
• C)Prior to the 1970s, corporations were unable to issue junk bonds.
• D)A popular measure of junk bond yields reached a record low in 2012.

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Definitions:

Indirect Approach

A strategy that addresses objectives or situations in a less straightforward manner, often using suggestions, implications, or other less direct methods.

Refusing Claim

The act of denying or rejecting a request, demand, or assertion, often in a formal or official context.

Negative News

Information or messages that convey unfavorable, disappointing, or unpleasant information.

Content And Tone

The substance or material dealt with in a text, speech, or work of art, and the manner in which it is expressed.