Cole, a financial advisor, has told his clients the following things. Which of his statements is not correct?
A)"U.S.government bonds generally pay a higher rate of interest than corporate bonds."
B)"The interest received on corporate bonds is taxable."
C)"U.S.government bonds have the lowest default risk."
D)"If you purchase a municipal bond, you can sell it before it matures."

Question

Quizplus · Accepted Answer

U.S. government bonds typically offer lower interest rates compared to corporate bonds because they are considered to have a lower risk of default. Corporate bonds usually offer higher interest rates to compensate for their higher risk.

Cole, a Financial Advisor, Has Told His Clients the Following