1) Pick the FALSE statement with regard to non-investment grade debt

A. They have a credit rating of A by Moody's and DBRS

B. They are used as an attractive financing vehicle

C. They are junk bonds

D. They are high-yield

2) The provision that facilitates the orderly retirement of the bond issue is known as

A. a retractable clause

B. a redemption clause

C. a sinking fund

D. a retirement clause

3) A bond with a 17% coupon rate, and a face value of $1000, a 17% YTM and 17 years to maturity is trading at

A. par

B. premium

C. discount

D. none of the above