Interest Rates on High-Yield (Junk)bonds Are _____ Percentage Points Higher

question 83

Multiple Choice

Interest rates on high-yield (junk) bonds are _____ percentage points higher than safer bond issues.

• A)one to two
• B)two to three
• C)three to four
• D)four to five
• E)five to six

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Definitions:

Estimated Average

The estimated average is a calculated middle value within a set of numbers, determined to represent a general or expected value in data analysis.

Annual Income

The total amount of income earned over a year, including wages, salaries, bonuses, and other earnings before taxes and deductions.

Average Investment

The mean amount of capital invested in a particular asset, project, or portfolio over a specific time period.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return; used in financial analysis to assess the value of future income.