25 Which of the following is NOT accurate regarding bonds Se

25 Which of the following is NOT accurate regarding bonds? Select one: a. Treasury Bonds have the lowest default risk b. Municipal Bonds have no default risk c. Mortgage Backed Bonds are collateralized d. All of the following are accurate regarding bonds e. Corporate Bonds have the lowest liquidity

Solution

Every instrument carries default risk to some extent, thought it can be minimal.

Muncipal bonds does also carries default risk. Hence, the statement Muncipal bonds have no default risk is not accurate.

Correct option is -b

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