Stephanie is interested only in the rate of interest and is willing to take a great deal of risk in exchange for a high return. Which of the following bonds she should look for?
A)federal bonds with short terms
B)provincial bonds with long terms
C)corporate bonds with short terms
D)corporate bonds with long terms

Question

Quizplus · Accepted Answer

Corporate bonds with long terms typically offer higher rates of interest in exchange for the higher risk associated with investing in a private company. This is the best choice for Stephanie if she is willing to take on a great deal of risk in order to achieve a high return.  Federal bonds typically have lower interest rates but lower risk, while provincial bonds can vary in terms of risk and return. Short-term bonds generally have lower interest rates overall.

Stephanie Is Interested Only in the Rate of Interest and Is