Which of the Following Bonds Is Likely to Be Viewed

question 111

Multiple Choice

Which of the following bonds is likely to be viewed by investors as the riskiest?

• A) Subordinated debt
• B) Indexed bond
• C) Secured bond
• D) Asset-backed bonds

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Definitions:

Opportunity Cost

The expense associated with not choosing the second-best option when a decision is made.

Soybeans

A type of legume native to East Asia, widely grown for its edible beans which are used in various food products and for oil.

Opportunity Cost

Opportunity cost is the cost of foregoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Truck

A motor vehicle designed to transport cargo or goods.