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Which of the following statements concerning junk bonds is MOST correct? A. A rational investor will always prefer a AAA-rated bond to a junk bond.

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Which of the following statements concerning junk bonds is MOST correct? A. A rational investor will always prefer a AAA-rated bond to a junk bond. B. Junk bonds are priced higher than AAA-rated bonds because junk bonds are more risky. C. Junk bonds may also be called low-yielding securities. D. Junk bonds have higher interest rates than AAA-rated bonds because of the higher risk. Finance theory suggests that the current market value of a bond is bosed upon which of the toliowng? A. the sum total of principal and interest paid on a bond B. the future-value of interest paid on a bond C. the sum of the present value of the bond's interest payments and the present value of the principal D. the present value of a bonds par value plus the future value of the bond s present value

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