Which of the following bond buyers did not buy the bond that best met his or her objective?
A)Jackie wanted a bond with a high interest rate and was willing to take a lot of risk.She purchased a junk bond.
B)Andrew wanted a bond that would allow him to legally avoid paying federal income taxes.He purchased a municipal bond.
C)Suzy wanted to purchase a bond whose seller was unlikely to default.She purchased a bond that Standards and Poor's rated a low credit risk.
D)Cecilia held long-term bonds rather than short-term bonds to avoid risk.

Question

Quizplus · Accepted Answer

Cecilia's decision to hold long-term bonds instead of short-term bonds does not necessarily mean that she did not meet her objective. It depends on her specific objective and risk tolerance. Therefore, the other three bond buyers may have bought a bond that did not best meet their objective.

Which of the Following Bond Buyers Did Not Buy the Bond