Which of the following bonds would have the highest default risk?A) municipal bondsB) investment-grade bondsC) U.S. Treasury bondsD) junk bonds
Question
Solution 1
The bond with the highest default risk among the options provided would be D) junk bonds.
Here's why:
A) Municipal bonds are issued by local governments and they usually have a low default risk because they can raise taxes or cut public services to pay their debts.
B) Investment-grade bonds are Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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