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You have learned that junk bonds are high risk but also high yield debt instruments. They are often used to

finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength. As a rational investor, you should never invest in junk bonds due to their high risk. True or False?

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Ans ] False . Explanation High Yield Bonds offer return commensurate with the risk . Although they lack... View the full answer

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