Which of the Following Bonds Has the Greatest Default Risk

question 4

Multiple Choice

Which of the following bonds has the greatest default risk?

• A)A U.S Treasury bond with a two-year maturity
• B)An AAA corporate bond with a seven-year maturity
• C)A BBB corporate bond with a three-year maturity
• D)A CCC corporate bond with a 10-year maturity
• E)An AAA corporate bond with a 10-year maturity

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Definitions:

Thermoregulation

The process by which organisms maintain their internal body temperature within a physiological range despite external temperature changes.

Vitamin E Synthesis

The biochemical process by which organisms produce vitamin E.

Eccrine Sweat Gland

A type of sweat gland found throughout the body that regulates body temperature by releasing a watery sweat onto the surface of the skin.

Sebaceous Gland

A small oil-producing gland present in the skin of mammals, which secretes sebum into the hair follicles to lubricate the skin and hair.