IMANET Exam CMA Topic 4 Question 67 Discussion

Actual exam question for IMANET's CMA exam

Question #: 67
Topic #: 4

[All CMA Questions]

Junk bonds are

ASecurities rated at less than investment grade.

BWorthless securities.

CSecurities that are highly risky but offer only low yields.

DConsidered illegal since the collapse of the Drexel Burnham Lambert firm

Show Suggested Answer

Suggested Answer: D

Once an old piece of equipment has been disposed of, its histoncal cost no longer has an impact on a firms cash flows.

by Hermila at Mar 19, 2023, 01:56 PM

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Gary

20 hours ago

A) Securities rated at less than investment grade. Sounds about right - junk bonds are the high-risk, high-yield securities that investors love to hate!

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Glenna

12 days ago

I believe junk bonds are considered illegal since the collapse of Drexel Burnham Lambert firm.

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James

14 days ago

I agree with Dudley, junk bonds are risky but offer higher yields.

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Dudley

24 days ago

I think junk bonds are securities rated at less than investment grade.

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