Question

Bonds with relatively low risk of default are called

a.junk bonds.
b.zero coupon bonds.
c.investment-grade bonds (Rated Baa or better)
d.none of the above.

Answer 1

Investment-grade bonds are bonds with relatively low risk of default.

Step-by-step explanation:

Bonds with relatively low risk of default are called investment-grade bonds (Rated Baa or better). These bonds are considered to be safer investments compared to junk bonds or zero coupon bonds. Investment-grade bonds are issued by companies or governments with a low probability of defaulting on their payments.