When at least two-thirds of a bond mutual fund's portfolio consists of bonds rated below Baa by Moody's or BBB by Standard and Poor's, the fund is called a ____ fund.
A)growth
B)capital appreciation
C)high-yield bond
D)leveraged bond
E)None of these are correct.

Question

Quizplus · Accepted Answer

High-yield bond funds focus on bonds rated below Baa by Moody's or BBB by Standard & Poor's, which are considered lower credit quality but offer higher yields to compensate for the increased risk.

When at Least Two-Thirds of a Bond Mutual Fund's Portfolio