Question

Why is a bond with a higher interest rate often considered a higher risk investment? a. More secure bonds have higher interest rates. b. A higher interest rate means a higher rate of return on the investment. c. A higher interest rate would provide too much of a return on the investment. d. Some companies promise higher interest rates in order to attract the attention of investors. Please select the best answer from the choices provided A B C D

Answer 1

d. Some companies promise higher interest rates in order to attract the attention of investors.

Explanation: