Dany has the choice of two bonds, one that pays 5 percent interest and one that pays 8 percent interest. Which of the following is most likely?

a.

The 8 percent bond is less risky than the 5 percent bond.

b.

The 8 percent bond is a U.S. government bond, and the 5 percent bond is a junk bond.

c.

The 8 percent bond has a longer term than the 5 percent bond.

d.

The 8 percent bond is a municipal bond, and the 5 percent bond is a U.S. government bond.