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Suppose you want to invest in a bond, but you are worried about the entity defaulting and you losing everything. Which of the following would
Suppose you want to invest in a bond, but you are worried about the entity defaulting and you losing everything. Which of the following would be the safest investment for you? O A. Corporate bonds OB. Treasury bonds OC. Municipal bonds O D. All bonds have the same amount of default risk QUESTION 11 If the bond is not structured as a discount bond, what determines the amount of interest that you receive each year? O A. The maturity date B. The duration OC. The coupon rate D. The price QUESTION 12 Which of the following bonds is likely to have the lowest coupon rate? O A. Corporate bonds B. Municipal bonds OC. Treasury bonds OD. All bonds have the same coupon rate QUESTION 13 Suppose that you pay a high tax rate and are worried about the amount of money that you pay in taxes every year. You want to invest in something that will give you good returns, but on which you do not have to pay Federal taxes. Which of the following should you choose? O A. Corporate bonds B. Bonds issued by the state of Texas C. Bonds issued by the Federal government of Mexico OD. You must pay Federal taxes on all gains from bonds
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