Which of the following statements concerning junk bonds is MOST correct?
A.
A rational investor will always prefer a AAA-rated bond to a junk bond.
B.
Junk bonds have higher interest rates than AAA-rated bonds because of the higher risk.
C.
Junk bonds may also be called low-yielding securities.
D.
Junk bonds are priced higher than AAA-rated bonds because junk bonds are more risky.