According to an article in the New York Times, in 2012, everyone has piled into the junk
Question:
According to an article in the New York Times, in 2012, “everyone has piled into” the junk bond market. The article also observed,
“The average yields on these bonds have dropped to 6.6 percent, hovering near a record low.”
a. What are junk bonds?
b. Is there a connection between everyone having piled into the junk bond market and the yields on these bonds having fallen to a record low? Briefly explain.
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Related Book For
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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