Assume the Bonds Below Have the Same Term and Principal

question 28

Multiple Choice

Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating.Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate?

• A)corporate bond,municipal bond,U.S.government bond
• B)corporate bond,U.S.government bond,municipal bond
• C)municipal bond,U.S.government bond,corporate bond
• D)U.S.government bond,municipal bond,corporate bond

---

Definitions:

Reasonable Decisions

Choices made based on logical analysis, taking into account available data and potential outcomes.

Initial State

The starting condition or situation from which a process, action, or system begins.

Goal State

The desired final condition or achievement a person or a system aims to reach.

Problem Solving

Problem solving is the cognitive process of finding a solution to a challenging situation or overcoming a barrier through logical thinking, creativity, and decision-making strategies.