Bonds with a par value of less than $1,000 are known as:
A)Junk bonds
B)Baby bonds
C)Callable bonds
D)Unsecured bonds
E)Convertible bonds

Question

Quizplus · Accepted Answer

Bonds with a par value of less than $1,000 are known as baby bonds. Junk bonds are bonds with a high risk of default, callable bonds are bonds that can be redeemed by the issuer before the maturity date, unsecured bonds are not backed by any specific collateral or asset, and convertible bonds can be converted into a certain number of shares of the issuer's common stock.

Bonds with a Par Value of Less Than $1,000 Are