Jerry Has the Choice of Two Bonds,one That Pays 5

Multiple Choice

Jerry has the choice of two bonds,one that pays 5 percent interest and one that pays 2 percent interest.Which of the following is most likely?

A) The 2 percent bond is more risky than the 5 percent bond.
B) The 5 percent bond is a U.S.government bond,and the 2 percent bond is a junk bond.
C) The 2 percent bond has a longer term than the 5 percent bond.
D) The 2 percent bond is a municipal bond,and the 5 percent bond is a U.S.government bond.