Vidyalelo
Management · Q379

International Finance and Treasury

Graduate and Post Graduate · Management · question 379

Q379

Bonds rated lower than triple-B bonds by Standard and Poor's are considered as

A.
split bonds
B.
automated bonds
C.
junk bonds
Answer
D.
sinking bonds

Answer: Option C

Solution

Answer: Option C
Solution:
Bonds rated lower than triple-B bonds by Standard and Poor's are considered as junk bonds. Junk bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments.