Problemrank the following bonds in order from lowest credit, Ask an Expert

Accounting

Problem:

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.

IB bond, B&O bond, TC bond, JM bond
JM bond, TC bond, B&O bond, IB bond
JM bond, IB bond, B&O bond, TC bond
TC bond, B&O bond, IB bond, JM bond

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172030

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