Junk bonds which are rated lower than triple B are also classified as
A
high yield bonds
B
low yield bonds
C
zero floating bonds
D
high floating rate bonds
Correct Answer: high yield bonds
Junk bonds which are rated lower than triple B are also classified as high yield bonds. A high-yield bond is a high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.