Gina has the choice of two bonds, one that pays 5 per cent interest and one that pays 10 per cent interest. Which of the following is most likely?
A) The 10 per cent bond has a shorter term than the 5 per cent bond
B) The 10 per cent bond is a government bond, and the 5 per cent bond is a junk bond
C) The 10 per cent bond is more risky than the 5 per cent bond
D) All of the above are equally likely
Correct Answer:
Verified
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