Ian Has the Choice of Two Bonds,one That Pays 4

Multiple Choice

Ian has the choice of two bonds,one that pays 4 percent interest and one that pays 86 percent interest.Which of the following situations is most likely?

A) The 8 percent bond is less risky than the 4 percent bond.
B) The 8 percent bond is a Canadian government bond,and the 4 percent bond is a junk bond.
C) The 8 percent bond has a longer term than the 4 percent bond.
D) The 8 percent bond is a Canadian government bond,and the 4 percent bond is a provincial bond.