“junk bonds” (high yield bonds)


The paper instructions:

The paper should be written within 2 pages in APA format.

Write addressing the two questions below:

(1) Are “junk bonds” (high yield bonds) an overlooking and undervalued
investment, or a foolish and risky investment? Please explain your
reasoning.

Junk bonds are risky and you may end up losing investment. Therefore
you should use investment strategies utilizing fixed income securities
to diversify risk. So (2)What other fixed income securities would you
buy to diversify risk? Why? Please explain your reasoning.

Remember while writing to keep in mind things like risk and return
related to junk bonds, types of fixed income securities (e.g., bonds,
T-bills, etc.), and key factors in analyzing bond investment risk.

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