Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Trending News

Promoted
?
? asked in Social ScienceEconomics · 8 years ago

Securities/Yield to maturity question for corporate bonds?

Put the following securities in order according to their likely yields to maturity, from highest to lowest:

A: A corporate bond rated Aaa (Low risk)

B: A corporate bond identical in every way to bond A, but rated Baa (Medium risk)

C: A corporate bond identical in every way to bond A, but rated C (High risk)

a) A, B, C

b) B, A, C

c) C, B, A

d) C, A, B

Best answer to whoever answers fastest and correctly. Thank you in advance!

1 Answer

Relevance
  • Wizened wizard
    Lv 7
    8 years ago

    Generally, the higher risk bond must offer a higher rate of interest. Therefore, c) C, B, A.

Still have questions? Get your answers by asking now.