Which one of the following bonds is most likely to have the highest interest rate? All of the bonds mature in 10 years.
A)Bond that is rated CCC
B)Mortgage bond that is rated AAA
C)Debenture bond that is rated BBB
D)Convertible bond that is rated BBB
E)Bond that is rated A

Question

Quizplus · Accepted Answer

Bonds that are rated CCC are considered to be high-risk, high-yield bonds, which means they offer a greater return for investors but also carry a higher risk of default than bonds with higher ratings. Therefore, a CCC bond is most likely to have the highest interest rate among the options given.

Which One of the Following Bonds Is Most Likely to Have