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QUESTION 25 Which of the following has the most default risk? O a. 30-year Treasury bond. O b. GNMA. C. XYZ Small Cap Corporate bond

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QUESTION 25 Which of the following has the most default risk? O a. 30-year Treasury bond. O b. GNMA. C. XYZ Small Cap Corporate bond - AA rated. d. Central City Municipal General Obligation Bond - BBB+ rated. QUESTION 26 Assume that the 1-year rate is 4% and the 2-year rate is 6%. Based on the expectations theory, what is the implied 1-year rate, 1 year from today? a. 4%. b.6%. O c. 8%. O d. 9%

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