IMANET Exam CMA Topic 4 Question 67 Discussion

Actual exam question for IMANET's CMA exam

Question #: 67
Topic #: 4

[All CMA Questions]

Junk bonds are

ASecurities rated at less than investment grade.

BWorthless securities.

CSecurities that are highly risky but offer only low yields.

DConsidered illegal since the collapse of the Drexel Burnham Lambert firm

Show Suggested Answer

Suggested Answer: D

Once an old piece of equipment has been disposed of, its histoncal cost no longer has an impact on a firms cash flows.

by Hermila at Mar 19, 2023, 01:56 PM

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Cyndy

23 days ago

E) Securities that come with a free pack of antacids. Hey, if you're investing in junk bonds, you're gonna need it!

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Pansy

24 days ago

C) Securities that are highly risky but offer only low yields. Aha, now that sounds more like the junk bonds I know - high risk, low reward. Not exactly a winning combination.

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Casie

26 days ago

B) Worthless securities. Hmm, I don't think that's accurate. Junk bonds may be risky, but they're not completely worthless... are they?

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Ardella

1 months ago

D) Considered illegal since the collapse of the Drexel Burnham Lambert firm. Wait, what? Junk bonds are illegal now? I must have missed that memo!

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Fernanda

1 days ago

D) Considered illegal since the collapse of the Drexel Burnham Lambert firm. Really? I didn't know that either!

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Aleisha

15 days ago

C) Securities that are highly risky but offer only low yields.

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Lemuel

16 days ago

A) Securities rated at less than investment grade.

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2 months ago

I think junk bonds are securities rated at less than investment grade.

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