Why are investment-grade bonds given that name? Why are junk bonds also known as high-yield bonds?

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Why are investment-grade bonds given that name? Why are “junk bonds” also known as “high-yield bonds”?

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Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Question Posted: Mar 27, 2015 12:18 PM

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Why are investment-grade bonds given that name? Why are junk bonds also known as high-yield bonds?

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Bonds rated BBB or higher are called investmentgrade as instit...View the full answer

Introduction to Finance Markets Investments and Financial Management

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