Junk bonds ________
A) are paid with the highest interest rates
B) are typically rated in the A or B category
C) are relatively safe investments
D) are backed by insurance policies
E) are not attractive to any investors
A
Explanation: A) Those bonds with the lowest ratings–and the most risk–are known as junk bonds. Because of their high risk, junk bonds offer a high interest rate to attract investors.
You might also like to view...
Procedural laws are those laws that relate to the enforcement of substantive rights and duties
a. True b. False
The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________
A) make any cash payment for deferential treatment in a foreign transaction B) make any payment over 5 percent of total cost toward administrative overhead in foreign transactions C) knowingly corrupt a foreign official D) knowingly pay a foreign clerical or administrative employee in exchange for service