Rank the Following Bonds in Order from Lowest Credit Risk

question 18

Multiple Choice

Rank the following bonds in order from lowest credit risk to highest risk all with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 12.25 percent, IB Corporate bond with yield of 4.49 percent, TC Corporate bond with yield of 8.76 percent, and B&O Corporate bond with a yield of 5.99 percent.

• A) JM bond, TC bond, B&O bond, IB bond
• B) IB bond, B&O bond, TC bond, JM bond
• C) TC bond, B&O bond, IB bond, JM bond
• D) JM bond, IB bond, B&O bond, TC bond

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Definitions:

Holacracy

An organizational structure where power and decision-making are distributed throughout self-organized teams rather than being centralized in a traditional management hierarchy.

Strategize

The action of planning or devising a course of action or policy to achieve a major or overall aim.

Management Teams

Groups of individuals who work together to make decisions and oversee the implementation of those decisions within an organization.

Systems Theory

An interdisciplinary study that examines complex systems in nature, society, and science, emphasizing their components, interrelationships, and the principles guiding overall behavior.