In Canada,the yield to maturity of bonds issued by the commercial banks is generally ________the yield to maturity of bonds issued by both federal and provincial governments.
A) lower than
B) equal to
C) higher than
D) none of the above

Question

Quizplus · Accepted Answer

Bonds issued by commercial banks typically have a higher yield to maturity than those issued by federal and provincial governments because they are considered to have a higher risk compared to government bonds. Government bonds are backed by the government, making them less risky and thus they offer lower yields.

In Canada,the Yield to Maturity of Bonds Issued by the Commercial