Bond is more risky than the five percent bond

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Reference no: EM13816001

Gina has the choice of two bonds, one that pays 5 percent interest and the other that pays 10 percent interest. Which of the following is most likely?

A. The 10 percent bond has a shorter term than the 5 percent bond.

B. The 10 percent bond is more risky than the 5 percent bond.

C. The 10 percent bond is a Canadian government bond, and the 5 percent bond is a junk bond.

D. All of the above are equally likely.

Reference no: EM13816001

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