Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond ha

Question

3 years ago

12

Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond ha

s a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate?
a. corporate bond, municipal bond, U.S. government bond
b. corporate bond, U.S. government bond, municipal bond
c. municipal bond, U.S. government bond, corporate bond
d. U.S. government bond, municipal bond, corporate bond

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1 answer:

netineya [11] · Answer 1 · 2022-01-02T03:58:08+03:00

netineya [11]3 years ago

3 0

Answer:

b.

Explanation:

The list that have bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate is option (b) which is;

corporate bond, U.S. government bond, municipal bond