Find connection in everyone having piled in junk bond market


According to the article in the New York Times, in 2012, "everyone has piled into" "the junk bond market. The article also observed, "The average yields on these bonds have dropped to 6.6%, hovering near a record low".

a. What are junk bonds?

b. Is there connection between everyone having piled into the junk bond market and the yields on these bonds having fallen to a record low? Explain.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Find connection in everyone having piled in junk bond market
Reference No:- TGS0517365

Expected delivery within 24 Hours