Which one of the following bonds would likely have the lowest risk?

Question

Quizplus · Accepted Answer

Treasury bills are issued by the U.S. government and are considered to be the safest investment option as they are backed by the full faith and credit of the government. They have the lowest risk as there is almost no chance of default. Municipal bonds are issued by local governments and are generally considered safe, but they carry a slightly higher risk than Treasury bills. Corporate bonds are issued by companies and carry higher risk than Treasury bills and Municipal bonds. Government agency bonds carry a moderate amount of risk. Junk bonds are high-yield, high-risk bonds issued by companies with poor credit ratings. They carry the highest risk.

Which One of the Following Bonds Would Likely Have the Lowest