Which one of the following identifies the distinction between a Canada bond and a corporate bond?
A)Canada bonds make coupon payments; corporate bonds do not
B)Corporate bonds have default risk; Canada bonds do not
C)Corporate bonds have longer terms
D)Canada bonds have higher yields

Question

Quizplus · Accepted Answer

The key distinction between a Canada bond and a corporate bond is that corporate bonds carry default risk, while Canada bonds do not. Corporate bonds are issued by private companies, and there is always a risk that the issuer may default on its bond payments. Canada bonds, on the other hand, are issued by the government of Canada, which means that they are considered to be a low-risk investment. The other answer choices are incorrect. Canada bonds and corporate bonds both typically make coupon payments, and the terms of the bonds can vary depending on the issuer. Canada bonds are often seen as a lower-risk investment, which means that they may have lower yields than corporate bonds.

Which One of the Following Identifies the Distinction Between a Canada