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Why might an investor choose to buy a bond with a lower credit rating? Lower - rated bonds have higher liquidity in the secondary market.
Why might an investor choose to buy a bond with a lower credit rating?
Lowerrated bonds have higher liquidity in the secondary market.
Lowerrated bonds typically offer higher yields to compensate for additional risk.
Lowerrated bonds are guaranteed by government agencies.
Lowerrated bonds have shorter maturities, reducing interest rate risk.
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