If a bond has a credit rating of A, which of the following is not true: A. The bond has more risk than a government bond B. The bond is considered a junk bond C. The bond is less risky than a BBB bond D. The bond is currently making all of its debt payments   Is it junk bond? Because they are riskier bonds and will provide more returns?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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If a bond has a credit rating of A, which of the following is not true:

A. The bond has more risk than a government bond

B. The bond is considered a junk bond

C. The bond is less risky than a BBB bond

D. The bond is currently making all of its debt payments

 

Is it junk bond? Because they are riskier bonds and will provide more returns? 

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