Explanation:
The correct answer is A. It is not investment-grade.
High-yield is a ratings-based classification. A bond is either:
If the bond is currently high-yield, then it must be non-investment-grade now. However, it was not necessarily always high-yield in the past.
Why the others are not required:
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Question 507.3. Keedsler Motors issued a bond five years ago which is currently a high-yield bond. Each of the following is not necessarily true, except which of the following MUST be true about this bond?
A
It is not investment-grade
B
It was never investment-grade
C
It is subordinated and/or unsecured
D
It has a yield at least 100 basis points above the benchmark and offers more interest rate risk than credit risk