Question

List the following stocks and bonds in order from highest default risk to lowest default risk:

A bond in an unstable foreign government
A common stock in a company under federal investigation
A US Treasury bond

Answer 1

I think you've got it already. This is more an econ question.

Answer 2

yeah it's exactly that, i think its the common stock, then the bond with an unstable gov, and then a US tresury bond but i dont know if i'm right @Numb3r1

Answer 3

oooooh you meant to say it was already in the correct order! lol sorry.

Answer 4

Unstable governments have a high default risk. The company under investigation will probably still be worth something, whereas bonds issued by dictators are usually not valid when the dictatorship collapses. I'd leave it as it originally was listed.

Answer 5

It's fine. That's my reasoning, but obviously the situation varies and in some cases your idea is justified.

Answer 6

oka it's actually the way i said it but thanks anyways :)

Answer 7

I suppose companies collapse more than governments.