Identify which one of the following securities has the highest nominal annual yield at issuance and which one is the safest investment Use the key determinants of Nominal Interest Rate to briefly explain why (4 marks) 20 year treasury bonds 10 year corporate bonds with AAA rating 30 year corporate bonds with AAA rating 10 year corporate bonds with BB rating 30 year corporate bonds with BB rating 3 month treasury notes

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Identify which one of the following securities has the highest nominal annual yield at issuance and which one is the safest investment? Use the key

Identify which one of the following securities has the highest nominal annual yield at issuance and which one is the safest investment? Use the key determinants of Nominal Interest Rate to briefly explain why. (4 marks)

20-year treasury bonds
10-year corporate bonds with AAA rating
30 -year corporate bonds with AAA rating
10-year corporate bonds with BB rating
30-year corporate bonds with BB rating
3-month treasury notes

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