Question

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

A municipal bond in a city with a population of 150,000
A common stock in a company under federal investigation
A preferred stock in a 150-year old firm with good business practices

municipal bond, common stock, preferred stock
municipal bond, preferred stock, common stock
common stock, preferred stock, municipal bond
common stock, municipal bond, preferred stock

Answer 1

i'm stuck between c and d.

Answer 2

hint: a municipal bond has the guarantee of the municipal govt behind the bond

Answer 3

so municipal bond would be the lowest risk?

Answer 4

correct

Answer 5

thank you