Which of the following is correct?
A)Lenders sell bonds and borrowers buy them.
B)Long-term bonds usually pay a lower interest rate than do short-term bonds because long-term bonds are riskier.
C)The term junk bonds refers to bonds that have been resold many times.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

None of the statements are correct. Lenders buy bonds and borrowers issue them. Long-term bonds typically pay a higher interest rate due to increased risk. Junk bonds are high-yield bonds with lower credit ratings, not related to resale frequency.

Which of the Following Is Correct