The reason due to which junk bonds are purchase by the investors.

Question

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Answer 1

Question

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.

Economics Concept Introduction

Introduction:Junk bonds are the bonds which have high yield. Junk bond is also known as the non-investment bonds.

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Answer 2

Question

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.

Economics Concept Introduction

Introduction:Junk bonds are the bonds which have high yield. Junk bond is also known as the non-investment bonds.

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Answer 3

Question

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.

Economics Concept Introduction

Introduction:Junk bonds are the bonds which have high yield. Junk bond is also known as the non-investment bonds.

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Answer 4

Question

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.

Economics Concept Introduction

Introduction:Junk bonds are the bonds which have high yield. Junk bond is also known as the non-investment bonds.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.

Economics Concept Introduction

Introduction:Junk bonds are the bonds which have high yield. Junk bond is also known as the non-investment bonds.

Answer 6

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.

Economics Concept Introduction

Introduction:Junk bonds are the bonds which have high yield. Junk bond is also known as the non-investment bonds.

Answer 7

Chapter 6, Problem 1Q

To determine

The reason due to which junk bonds are purchase by the investors.

Answer 8

Expert Solution & Answer

Explanation of Solution

The junk bond involves high risk and return. This bond is generally purchased by risk lover investors and the face value of junk bond is always very less.

The reason due to which investors purchase junk bond is that it provides higher return. So, those investors who love to play with market risk generally purchase junk bond to receive higher return.