Assuming That the Bonds Below Have the Same Term and Principal

question 127

Multiple Choice

Assuming that the bonds below have the same term and principal and that the state or local government which issues the municipal bond has a good credit rating,which list has bonds ordered from the one that pays the most interest to the one that pays the least interest?

• 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