Credit Risk and Yield Rank the following bonds in order from lowest credit risk to highest risk all with the same time to maturity,by their yield to maturity: JM Corporate bond with yield of 12.25 percent,IB Corporate bond with yield of 4.49 percent,TC Corporate bond with yield of 8.76 percent,and B&O Corporate bond with a yield of 5.99 percent.
A) JM bond, TC bond, B&O bond, IB bond
B) IB bond, B&O bond, TC bond, JM bond
C) TC bond, B&O bond, IB bond, JM bond
D) JM bond, IB bond, B&O bond, TC bond
Correct Answer:
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