Q564
According to top rating agencies S&P double-B and other lower grade bonds are classified as
A.
development bonds
B.
junk bonds
AnswerC.
compounded bonds
D.
discounted bonds
Answer: Option B
Solution
Answer: Option B
Solution:
According to top rating agencies S&P double-B and other lower grade bonds are classified as junk bonds. Junk bonds represent bonds issued by companies that are struggling financially and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors.