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

Question

Quizplus · Accepted Answer

U.S. Treasury bonds typically have the lowest interest rate among the given securities as they are considered to be the safest investment and carry very low risk. Junk bonds, on the other hand, have a high risk of default and therefore have higher interest rates to compensate for the risk. Investment-grade bonds and Corporate Baa bonds are also riskier than U.S. Treasury bonds, and typically have higher interest rates as well.

Which of the Following Securities Has the Lowest Interest Rate