Which of the following types of bonds are excluded from most bond indices?
A) Corporate bonds
B) Junk bonds
C) Municipal bonds
D) None of the above

Question

Quizplus · Accepted Answer

Junk bonds are excluded from most bond indices due to their high credit risk and low credit rating. Most bond indices only include investment-grade bonds, which have a lower probability of default and are considered safer investments. Corporate and municipal bonds can be included in bond indices depending on their credit ratings and other criteria.

Which of the Following Types of Bonds Are Excluded from Most