Rank the Following Bonds in Order from Lowest Credit Risk

Rank the following bonds in order from lowest credit risk to highest risk all with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 12.25 percent, IB Corporate bond with yield of 4.49 percent, TC Corporate bond with yield of 8.76 percent, and B&O Corporate bond with a yield of 5.99 percent.

A) JM bond, TC bond, B&O bond, IB bond
B) IB bond, B&O bond, TC bond, JM bond
C) TC bond, B&O bond, IB bond, JM bond
D) JM bond, IB bond, B&O bond, TC bond

Correct Answer:

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