Bonds with the Lowest Risk of Default Are Often Referred

question 58

True/False

Bonds with the lowest risk of default are often referred to as junk bonds.

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Definitions:

Implied Warranty

A legal premise that goods sold meet certain criteria for use as understood by the buyer and seller, even if not explicitly stated.

Express Warranty

An explicitly stated guarantee by a seller regarding the condition or quality of a product.

Warranty of Title

A guarantee provided by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed encumbrances exist.

Particular Purpose

A specific objective or intended use for which something is designated or implemented.