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

question 52

Multiple Choice

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

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

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Definitions:

Simple Interest

The calculation of interest that is based only on the original principal amount and does not include interest on interest.

Market Values

Refers to the current price at which an asset, security, or commodity can be bought or sold in the marketplace.

Promissory Note

A Promissory Note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date.

Promissory Note

Definition: A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.