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Which of the following statements concerning junk bonds is most correct?

A) A rational investor will always prefer a AAA-rated bond to a junk bond.

B) Junk bonds have higher interest rates than AAA-rated bonds because of the higher risk.

C) Junk bonds may also be called low-yielding securities.

D) Junk bonds are priced higher than AAA-rated bonds because junk bonds are more risky.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M952317

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