Which List of Bonds Is Ordered from the Most Interest

question 4

Multiple Choice

Which list of bonds is ordered from the most interest to the least interest?

• A) corporate bond, municipal bond, federal government bond
• B) corporate bond, federal government bond, municipal bond
• C) municipal bond, federal government bond, corporate bond
• D) municipal bond, corporate bond, federal government bond

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Definitions:

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing excess earnings over the opportunity cost of capital.

MR Curve

The marginal revenue curve, which shows how the revenue from selling one more unit of a good or service changes as the quantity sold changes.

Economic Losses

Occurs when a company's total costs exceed its total revenues, indicating that the business is not efficiently allocating its resources.

Economic Profits

Profits exceeding the opportunity costs of a company's resources, indicating it is generating returns beyond the next best alternative.