Which of the following long-term bonds should have the highest interest rate?
A) Corporate Baa bonds
B) U.S. Treasury bonds
C) Corporate Aaa bonds
D) Municipal bonds

Question

Quizplus · Accepted Answer

Corporate Baa bonds typically have a higher interest rate compared to U.S. Treasury bonds, Corporate Aaa bonds, and Municipal bonds due to their lower credit quality. Higher risk associated with Baa bonds demands a higher yield as compensation.

Which of the Following Long-Term Bonds Should Have the Highest