A U.S. government bond paying 3.25% interest annually is a lower risk than a Bellandro Bay Brewery bond paying 6%.

Name: A U.S. government bond paying 3.25% interest annually is a lower risk than a Bellandro Bay Brewery bond paying 6%.
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U.S. government bonds are generally considered to be lower risk than corporate bonds, such as the Bellandro Bay Brewery bond. The lower interest rate on the government bond reflects this lower risk.

A US Government Bond Paying 3