Which of the Following Bonds Would Have the Lowest Interest

question 35

Multiple Choice

Which of the following bonds would have the lowest interest rate? All of the bonds have 10 years to maturity.

• A)Bond that is rated CCC
• B)Debenture bond rated BBB
• C)Mortgage bond rated AAA
• D)Convertible bond rated BBB
• E)High-yield bond rated CCC

---

Definitions:

Demand Shock

An unexpected event that suddenly changes the demand for goods or services, potentially leading to swift changes in prices and economic adjustments.

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Tax Rates

The percentage at which an individual or corporation is taxed.

Interest Rates

The price paid for the use of borrowed money or the earnings from an investment, represented as a percentage of the total amount invested or borrowed.