You have some money to invest, and you don't really care about risk-the return is your sole focus. Which investment would probably be the most attractive to you? corporate bonds with a CCC rating corporate bonds with an AA rating government bonds. large company stocks

You have some money to invest, and you don't really care about risk-the return is your sole focus. Which investment would probably be the most attractive to you? corporate bonds with a CCC rating corporate bonds with an AA rating government bonds. large company stocks

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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stion 20 of 41 >
You have some money to invest, and you don't really care about risk-the return is your sole focus. Which investment
would probably be the most attractive to you?
corporate bonds with a CCC rating
corporate bonds with an AA rating
government bonds
large company stocks

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A bond is a financial asset where the issuer is obliged to pay a bond holder interest at specified intervals (the coupon) and/or to repay the principal at a specified future date (the maturity date). pays a rate of return (interest) that fluctuates with market conditions. receives regular payments from the bond holder determined at a market rate at the time of payment. pays a higher rate of return (yield) as the price of the bond rises.