A bond with speculative rating

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Reference no: EM132018725

1. A bond with a speculative rating will have which of the following characteristics?

A) A high coupon yield

B) A high yield to maturity

C) Double BB or lower rating

D) All of the above are correct.

E) Only A and B are correct.

2. Lavon has his money invested into an asset that has averaged the following returns the last three years: +22%, -8%, +13%. Most likely what type of asset is he invested in?

A) Corporate bonds                                             

B) Income producing real estate

C) Gold coins

D) Common stock

Reference no: EM132018725

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