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.
A
You might also like to view...
Which of the following is true about monopolistic competition?
A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) Firms do not have economies of scale.
When depository institutions have negative excess reserves, it indicates that the banking system is not "loaned up."
a. True b. False Indicate whether the statement is true or false