Which One of the Following Bonds Is Likely to Have

question 15

Multiple Choice

Which one of the following bonds is likely to have the highest required rate of return,ceteris paribus?

• A)AAA-rated non-callable corporate bond with a sinking fund
• B)AA-rated callable corporate bond with a sinking fund
• C)AAA-rated callable corporate bond with a sinking fund
• D)High-quality municipal bond
• E)AA-rated callable corporate bond without a sinking fund