Which of the Following Long-Term Bonds Should Have the Lowest

question 78

Multiple Choice

Which of the following long-term bonds should have the lowest interest rate?

• A) Corporate Baa bonds
• B) U.S. Treasury bonds
• C) Corporate Aaa bonds
• D) Municipal bonds

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Definitions:

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The authorization granted by the Food and Drug Administration indicating that a drug, device, or food product meets its standards for safety and efficacy for human use.

Expected Return

The weighted average of all possible returns for an investment, with weights being the probabilities of each outcome.

Two-Asset Portfolio

An investment portfolio comprising two types of assets, often used to analyze and understand the risk-reward trade-off in finance.

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