10.11: Review Questions
- Page ID
- 94673
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1.
What is a junk bond?
2.
Briefly describe interest income within the context of bond investments.
3.
Briefly describe the two types of cash flow that a bondholder will receive from the issuer.
4.
What is an inverted yield curve, and what is its significance?
5.
Describe reinvestment risk for a bondholder.