Which of the following bonds (of equal maturity)would have the lowest risk premium?
A)U)S. government bonds
B)German government bonds
C)the bonds of a financially stable corporation, like IBM
D)Bonds rated Aaa by Moody's
E) junk bonds

Question

Quizplus · Accepted Answer

U.S. government bonds are considered to have the lowest risk premium because they are backed by the full faith and credit of the U.S. government. This means that investors have a very low risk of default, making them less risky than other options on the list.

Which of the Following Bonds (Of Equal Maturity)would Have the Lowest