Which of the following statements about junk bonds is false?
A) Given the likelihood of default, it is never profitable to purchase junk bonds.
B) They pay higher interest rates than investment grade bonds due to higher perceived risk.
C) Prior to the 1970s, corporations were unable to issue junk bonds.
D) A popular measure of junk bond yields reached a record low in 2012.
A
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Which of the following is not correct concerning predatory dumping?
a. It may be a way to discourage the development of domestic production of a good. b. It may drive out established firms. c. There are a great number of documented cases of predatory dumping. d. In actuality, the blocking of entry on a worldwide scale would be extremely difficult to accomplish. e. In pursuing their monopoly position after dumping, dumpers may actually encourage the entry of other firms.
If the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is 90
a. True b. False Indicate whether the statement is true or false
"Tit-for-tat" prevents cheating
Indicate whether the statement is true or false
In a closed economy, investment must be equal to private saving
a. True b. False Indicate whether the statement is true or false