Which of the following bonds have the highest default risk for a given return??

A. ?A U.S Treasury bond with a 2-year maturity.
B. ?An AAA corporate bond with a 7-year maturity.
C. ?A BBB corporate bond with a 3-year maturity.
D. ?A CCC corporate bond with a 10-year maturity.
E. ?An AAA corporate bond with a 3-year maturity.


Answer: D

Business

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