Assume that the bonds below have the same term and principal and that the province or local government that issues the municipal bond has a good credit rating. Which listing of bonds is ordered from the one that pays the most interest to the one that pays the least interest?
A)corporate bond, municipal bond, federal government bond
B)corporate bond, federal government bond, municipal bond
C)municipal bond, federal government bond, corporate bond
D)federal government bond, municipal bond, corporate bond

Question

Quizplus · Accepted Answer

Municipal bonds typically pay higher interest rates than corporate bonds, which in turn pay higher interest rates than federal government bonds.

Assume That the Bonds Below Have the Same Term and Principal