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CFA Level 1
Fixed Income

Identification of High-Risk Bonds

Medium Fixed Income Securities Types Of Bonds

In the world of fixed income securities, various types of bonds are issued by governments and corporations to raise capital. These bonds come with distinct characteristics such as interest rate terms, repayment schedules, and default risk factors. Understanding these variations is essential for investors when selecting bonds for their portfolios.

Which of the following types of bonds is specifically associated with a higher risk of default due to the issuing entity's lower credit quality?

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