A company originally issued bonds that were rated investment grade. These bonds have now been downgraded to junk status. These bonds are referred to as: a. called bonds. b. fallen angels. c. floaters. d. unprotected bonds. e. converted bonds.

These bonds are referred to as fallen angels. This term is used for once high-rated bonds that have suffered a downgrade, particularly to junk status, due to deterioration in the issuer's credit quality. Investors often watch these closely since they can present opportunities—or risks—depending on how the issuing companies may recover. Fallen angels can also cause quite a stir in the markets! Investors holding these bonds might find their portfolios impacted, but for savvy traders, they can present a chance to scoop up potentially undervalued securities. Keep in mind, though, that buying fallen angels requires thorough research—you'll want to assess whether the company may bounce back or continue to sink!