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:

Investment Projects

Initiatives undertaken by individuals, companies, or governments to allocate capital in order to generate returns or achieve strategic goals.

Interest Rate

The cost incurred by a borrower for the privilege of using funds, defined as a percentage of the principal value.

Indifferent

A state of having no preference between two or more outcomes; neutrality in preference.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.