Which of the Following Bonds Would Have the Lowest Interest

question 23

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

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Definitions:

Neolin

A Native American religious prophet who, by preaching pan-Indian unity and rejection of European technology and commerce, helped inspire Pontiac’s Rebellion.

Barbary Wars

The first wars fought by the United States, and the nation’s first encounter with the Islamic world. The wars were fought from 1801 to 1805 against plundering pirates off the Mediterranean coast of Africa after President Thomas Jefferson’s refusal to pay them tribute to protect American ships.

Federalist Party

A political party in the early United States that advocated for a strong federal government, a commercial economy, and close relations with Britain.