Rank the following securities from lowest (1) to highest (8) in terms of their riskiness for an

Question:

Rank the following securities from lowest (1) to highest (8) in terms of their riskiness for an investor. All securities (except the Treasury bond) are for a given firm. If you think two or more securities are equally risky, indicate so.

a. Income bond ____________

b. Subordinated debentures—non-callable ____________

c. First mortgage bond—no sinking fund ____________

d. Common stock ____________

e. U.S. Treasury bond ____________

f. First mortgage bond—with sinking fund ____________

g. Subordinated debentures—callable ____________

h. Term loan ____________

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...