If you have poor
\ncredit due to being delinquent on credit card debt or other issues,
\nchances are the bank is going to charge you a higher interest rate on a
\npersonal loan, or it might not give you a loan at all. Corporations face
\nthe same problems. If a company takes on too much debt or is otherwise
\nconsidered to be a credit risk, then it also gets low credit ratings. In
\nthis case, if it wants to take on more debt it needs to issue what is
\nknown as \u201cjunk bonds,\u201d or as corporations prefer to call them,
\n\u201chigh-yield bonds.\u201d<\/p>\n

Whatever you call these types of bonds, their key feature is that
\nthey pay higher interest than bonds from a corporation that has a high
\ncredit rating. If you have a 401(k) or other retirement investment fund,
\nchances are you have the option to make a portion of your investment in
\nthese higher risk\/higher return bonds.<\/p>\n

Do some research on junk bonds. What kind of controversies do
\nyou see with them? Do you think they are a solid investment for your
\nretirement, perhaps no riskier than most investments? Or do they deserve
\nthe derogatory term \u201cjunk\u201d? Share the links to the articles you find
\nwith your classmates, and discuss your opinions as to whether you think
\nthe higher interest rate justifies the increased risk. <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Module 4 Discussions Junk Bonds If you have poor credit due to being delinquent on credit card debt or other issues, chances are the bank is going to charge you a higher interest rate on a personal loan, or it might not give you a loan at all. Corporations face the same problems. If a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/264901"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=264901"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/264901\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=264901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=264901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=264901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}