The interest rate on a AAA rated government treasury bond is 3.5%.A secured corporate bond is likely to pay:

Question

Quizplus · Accepted Answer

A secured corporate bond is likely to pay more than a government treasury bond because it carries a higher risk. The higher the risk, the higher the potential reward. Therefore, a secured corporate bond would most likely pay more than the 3.5% interest rate on a AAA rated government treasury bond.

The Interest Rate on a AAA Rated Government Treasury Bond