Which of the following securities has the lowest interest rate?
A) Junk bonds
B) Canada bonds
C) Investment-grade bonds
D) Corporate Baa bonds

Question

Quizplus · Accepted Answer

Canada bonds are issued by the government of Canada and are considered one of the safest securities available. They typically offer lower interest rates compared to other bonds to reflect this lower risk. Junk bonds, on the other hand, are high-risk and high-yield securities that offer higher interest rates to compensate for the risk. Investment-grade and Corporate Baa bonds are generally considered moderate-risk securities and offer moderate interest rates.

Which of the Following Securities Has the Lowest Interest Rate