Which of the following bonds would have the highest default risk?
A)municipal bonds
B)investment-grade bonds
C)U)S. Treasury bonds
D)junk bonds

Question

Quizplus · Accepted Answer

Junk bonds have the highest default risk among the options given. They are high-yield bonds that are issued by companies with lower credit ratings, making them riskier than investment-grade bonds or Treasury bonds. Municipal bonds generally have lower default risk than junk bonds as they are backed by local governments, but their risk level can vary depending on the financial health of the issuing municipality.

Which of the Following Bonds Would Have the Highest Default