Which of the Following Statements About Junk (High-Risk) Bonds Is

question 67

Multiple Choice

Which of the following statements about junk (high-risk) bonds is true?

• A)They never outperform treasury bonds since they're too risky.
• B)The price of junk bonds increase as their perceived risk increases.
• C)They tend to perform best during recessions.
• D)One can profit by owning them if market perceptions of their risk decline.

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Definitions:

Ureter

A tube carrying urine from the kidney to the urinary bladder.

Kidney

A vital organ in the body responsible for filtering waste products from the blood and excreting them through urine, regulating fluid and electrolyte balance.

Bladder

A hollow muscular organ in the lower abdomen that stores urine from the kidneys before it is excreted through the urethra.

Graft

A constructed part.