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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Cyndy

1 months ago

E) Securities that come with a free pack of antacids. Hey, if you're investing in junk bonds, you're gonna need it!

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Pansy

1 months ago

C) Securities that are highly risky but offer only low yields. Aha, now that sounds more like the junk bonds I know - high risk, low reward. Not exactly a winning combination.

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Desire

5 days ago

B) Worthless securities.

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Laurel

9 days ago

A) Securities rated at less than investment grade.

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Casie

1 months ago

B) Worthless securities. Hmm, I don't think that's accurate. Junk bonds may be risky, but they're not completely worthless... are they?

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Camellia

6 days ago

B) Worthless securities. Hmm, I don't think that's accurate. Junk bonds may be risky, but they're not completely worthless... are they?

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Brynn

11 days ago

C) Securities that are highly risky but offer only low yields.

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Stefanie

13 days ago

A) Securities rated at less than investment grade.

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Ardella

2 months ago

D) Considered illegal since the collapse of the Drexel Burnham Lambert firm. Wait, what? Junk bonds are illegal now? I must have missed that memo!

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Fernanda

17 days ago

D) Considered illegal since the collapse of the Drexel Burnham Lambert firm. Really? I didn't know that either!

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Aleisha

1 months ago

C) Securities that are highly risky but offer only low yields.

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Lemuel

1 months ago

A) Securities rated at less than investment grade.

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Gary

2 months 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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Jannette

3 days ago

A) Securities rated at less than investment grade. They can be risky, but some investors are willing to take the chance for the potential high returns.

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Cyndy

8 days ago

B) Worthless securities.

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Deeann

29 days ago

C) Securities that are highly risky but offer only low yields.

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Tamesha

1 months 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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