CFA Level 1
Fixed Income

Understanding Types of Bonds

Medium Fixed Income Securities Types Of Bonds

Consider the following three types of bonds:

A company is evaluating various types of bonds to issue for its new project. It wants to understand the differences between high-yield bonds, investment-grade bonds, and municipal bonds. Each type of bond has distinct characteristics that may influence the company’s decision based on risk, return, and tax considerations.

Which of the following statements correctly describes one of these types of bonds?

Hint

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