Consider a typical normal term structure. Arrange the following 10-year bonds from the highest yield to the lowest yield.

Select one:

a.

Government bonds, A-rated corporate bonds, BBB-rated corporate bonds

b.

BBB-rated corporate bonds, A-rated corporate bonds, government bonds

c.

A-rated corporate bonds, government bonds, BBB-rated corporate bonds

d.

BBB-rated corporate bonds, government bonds, A-rated corporate bonds

e.

A-rated corporate bonds, BBB-rated corporate bonds, government bonds