Between a 20year corporate bond from GE and a 20year US Trea

Between a 20-year corporate bond from GE and a 20-year US Treasury Bond, which would pay the lower interest rate and why? 26) (2pts) The corporate bond because of more favorable tax treatment.. The Treasury bond because of lower risk. The Treasury bond because of more favorable tax treatment. The corporate bond because of lower risk.

Solution

Answer.) The Treasury bond because of lower risk

The least risky investments also have the lower returns and in bonds market, Treasury bonds are considered to be with almost no risk.