Other things the same,which bond would you expect to pay the highest interest rate?

Question

Quizplus · Accepted Answer

A bond issued by a new restaurant chain would be considered the riskiest investment out of the options given. Therefore, in order to attract investors to purchase the bond, the restaurant chain would need to offer a higher interest rate. The U.S. government bond is generally considered the safest investment, so it would offer the lowest interest rate. IBM and New York State are both established entities, but would likely offer slightly lower interest rates than the new restaurant chain bond due to the higher risk associated with the new business.

Other Things the Same,which Bond Would You Expect to Pay