Given the same maturity, which of the following debt instruments would you expect to offer the highest yield-to-maturity?

Question

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Given the same maturity, the debenture issued by Abbott Laboratories would be expected to offer the highest yield-to-maturity. It is unsecured debt offered by a corporation and is the riskiest of the four choices. Bonds issued by the U.S. government and by U.S. government agencies are considered to be free of default-risk and would have lower yields to reflect this. The general obligation bond offered by the state of Massachusetts pays interest that is free from federal taxation and will have a lower yield because of this feature.

Given the Same Maturity, Which of the Following Debt Instruments