Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the HIGHEST interest rate? • A) Corporate bond, municipal bond, U.S. government bond B) Corporate bond, U.S. government bond, municipal bond • C)Municipal bond, U.S. government bond, corporate bond D)U.S. government bond, municipal bond, corporate bond

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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2

Assume the bonds below have the same
term and principal and that the state or
local government that issues the municipal
bond has a good credit rating. Which list
has bonds correctly ordered from the one
that pays the highest interest rate to the
one that pays the HIGHEST interest rate?
A) Corporate bond, municipal bond, U.S.
government bond •
B) Corporate bond, U.S. government bond,
municipal bond •
C)Municipal bond, U.S. government bond,
corporate bond •
D)U.S. government bond, municipal bond,
corporate bond
Transcribed Image Text:Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the HIGHEST interest rate? A) Corporate bond, municipal bond, U.S. government bond • B) Corporate bond, U.S. government bond, municipal bond • C)Municipal bond, U.S. government bond, corporate bond • D)U.S. government bond, municipal bond, corporate bond
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