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Unformatted text preview: paying interest or principal in a timely manner are rated below investment grade. These issuers must pay a higher interest rate to attract investors to buy their bonds and to compensate them for the risks associated with investing in organizations of lower credit quality. Organizations that issue high-yield debt include many different types of U.S. corporations, certain U.S. banks, various foreign governments and a few foreign corporations. Brigham, E. F., & Ehrhardt, M. C. (2011). Financial management: theory and practice. Australia: South-Western Cengage Learning...
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- Spring '10