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Given the following capital market instruments: 1.20 year Corporate Bonds (AAA Rating) 2.20 year Corporate Bonds (BAA Rating) 3.20 year Treasury Bonds From least to

Given the following capital market instruments:

1.20 year Corporate Bonds (AAA Rating)

2.20 year Corporate Bonds (BAA Rating)

3.20 year Treasury Bonds

From least to highest, which order should their interest rates be?

a.1, 2, 3

b.1, 3, 2

c.3, 1, 2

d.3, 2, 1

e.2, 1, 3

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