Rank the Following Bonds in Order from Lowest Credit Risk

question 18

Multiple Choice

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:

Phenylketonuria (PKU)

A genetic disorder characterized by an inability to metabolize the amino acid phenylalanine, leading to developmental problems if untreated.

Epistasis

A genetic interaction where the effect of one gene is modified by one or several other genes, which can suppress or mask the expression of the first gene.

Pleiotropy

The genetic phenomenon in which a single gene influences two or more seemingly unrelated phenotypic traits.

Polygenic Inheritance

Inheritance of traits influenced by multiple genes, contributing to phenotypic diversity.