Junk bonds are characterised by the:
A)small firms for which they are typically issued
B)high-technology firms for which they are typically issued
C)potential high returns offered to the bondholders
D)low risk to the bondholders

Question

Quizplus · Accepted Answer

Junk bonds are high-risk, high-yield bonds typically issued by companies that have a lower credit rating and a higher chance of default. As a result, the potential returns on junk bonds are higher than those on investment-grade bonds, but so is the risk of losing your investment.

Junk Bonds Are Characterised by The