Statements concerning junk bonds

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Reference no: EM13731447

Which of the following statements concerning junk bonds is most correct?

a) The rational investor will always prefer a AAA-rated bond to a junk bond

b) Junk bonds have higher interest rates than AAA-rated bonds because of the higher risk

c) Junk bonds may also be called low-yielding securities

d) Junk bonds are priced higher than AAA-rated bonds because junk bonds are more risky

Reference no: EM13731447

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