Which of the Following Long-Term Bonds Has the Lowest Interest

question 28

Multiple Choice

Which of the following long-term bonds has the lowest interest rate?

• A)corporate Baa bonds
• B)U.S. Treasury bonds
• C)corporate Aaa bonds
• D)municipal bonds

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and receive dividends.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets, calculated as sales divided by total assets.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets.

Market Price

The current price at which an asset or service can be bought or sold in a given market.