Author Question: What are junk bonds?[br][br][b][color=#347235]Question 2[/color][/b][br][br]People who have dental ... (Read 109 times)

arivle123 · **on:** Jun 30, 2018

What are junk bonds?

Question 2

People who have dental insurance don't floss often enough. This is an example of
A) asymmetric information.
B) bad parenting.
C) moral hazard.
D) risk adverse behavior

Tabitha_2016 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Bonds that have financed leveraged buyouts (LBOs) are pejoratively known as junk bonds, whose higher yields reflect of their higher default probabilities.

Answer to Question 2

C