Which of the Following 10-Year,AAA Rated Bonds Would Have the Lowest

question 75

Multiple Choice

Which of the following 10-year,AAA rated bonds would have the lowest yield?

• A)corporate bond.
• B)insured municipal bond.
• C)U.S.Treasury bond.
• D)mortgage-backed bond.

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Definitions:

Monopoly

A monopoly exists when a single company or entity has exclusive control over a particular market or product, allowing it to set prices without competition.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, often based on their willingness to pay.

Monopolist's Profits

The earnings a monopoly makes, calculated as total revenues minus its total costs, benefiting from the absence of competition in its market or industry.

Society's Welfare

The overall well-being and quality of life of the members of a society, encompassing economic, social, and environmental factors.