Question

rank the following kinds of bonds in order from least secure to most secure: municipal, corporate, treasury
a. corporate, municipal, treasury
b. treasury, corporate, municipal
c. treasury, municipal, corporate
d. municipal, corporate, treasury

Explanation:

To determine the security of bonds: Corporate bonds have higher default risk (least secure) as they depend on a company's financial health. Municipal bonds are backed by local governments, more secure than corporate but less than Treasury. Treasury bonds are backed by the U.S. government (most secure). So the order from least to most secure is Corporate, Municipal, Treasury.

Answer:

a. Corporate, Municipal, Treasury