Credit Risk and Yield Rank the Following Bonds in Order

question 46

Multiple Choice

Credit Risk and Yield Rank the following bonds in order from lowest credit risk to highest risk all with the same time to maturity,by their yield to maturity: JM Corporate bond with yield of 12.25 percent,IB Corporate bond with yield of 4.49 percent,TC Corporate bond with yield of 8.76 percent,and B&O Corporate bond with a yield of 5.99 percent.

• A)JM bond, TC bond, B&O bond, IB bond
• B)IB bond, B&O bond, TC bond, JM bond
• C)TC bond, B&O bond, IB bond, JM bond
• D)JM bond, IB bond, B&O bond, TC bond

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Definitions:

Cartilaginous Fish

Cartilaginous fish are a class of fishes that have skeletons made entirely out of cartilage, rather than bone, including sharks, rays, and skates.

Aquatic Environment

An ecosystem located within a body of water, encompassing both freshwater and marine habitats.

Amphibians

A class of cold-blooded vertebrates that can live both in water and on land, such as frogs, toads, salamanders, and newts.

Reproduction

The biological process by which new individual organisms are produced, either sexually with genetic contribution from two parents, or asexually from one.