Which of the following bond buyers did NOT buy the bond that best met his or her objective?
A)Mia wanted a bond with a high interest rate, regardless of the risk. She purchased a junk bond.
B)Anna wanted the least risky bond available. She purchased a federal bond.
C)Bill wanted to purchase a bond that was unlikely to default. He purchased a bond that Standard & Poor's rated a low credit risk.
D)To reduce risk, Toby purchased a long-term bond rather than a short-term one.

Question

Quizplus · Accepted Answer

Long-term bonds generally carry more risk than short-term bonds due to interest rate fluctuations and other factors, so Toby's choice does not align with his objective to reduce risk.

Which of the Following Bond Buyers Did NOT Buy the Bond