Sylvia 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 bond should she look for?
A) federal bonds with short terms
B) territorial 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 returns but also come with higher risk. Since Sylvia is willing to take a great deal of risk in exchange for a high return, these bonds would be the best choice for her. Federal bonds with short terms would likely have lower returns and territorial bonds may not offer the same level of risk and reward as corporate bonds.

Sylvia Is Interested Only in the Rate of Interest and Is