Which list of bonds is ordered from the most interest to the least interest?
A) corporate bond, municipal bond, federal government bond
B) corporate bond, federal government bond, municipal bond
C) municipal bond, federal government bond, corporate bond
D) municipal bond, corporate bond, federal government bond

Question

Quizplus · Accepted Answer

Corporate bonds typically offer the highest interest rates because they carry the highest risk. Municipal bonds offer lower interest rates since they have tax advantages and are considered safer than corporate bonds but riskier than federal government bonds. Federal government bonds (such as Treasury bonds) offer the lowest interest rates because they are considered the safest investment.

Which List of Bonds Is Ordered from the Most Interest