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SIE: Debt Securities
SIE practice questioneasyCorporate Bonds

Which of the following is most likely to have the highest yield?

  1. ATreasury bond
  2. BInvestment-grade corporate bond
  3. CHigh-yield corporate bond✓ Correct answer
  4. DMunicipal bond
Explanation

Why CHigh-yield corporate bond

High-yield (junk) bonds offer the highest yields to compensate for their higher default risk. Treasury, investment-grade, and municipal bonds generally offer lower yields.

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