Bonds issued by the government are safer investments because ____.

Aamount they pay at maturity
Bcredit rating of the issuer
Cinterest rate paid
Dcurrent yield

Verified Answer :

Bonds issued by the government are safer investments because B. CREDIT RATING OF THE ISSUER

Credit rating is an estimate of the ability of an individual or an organization to fulfill financial commitments based on previous dealings.

Unlike investments on a corporation, government issued bonds are assured of payment upon maturity without fear of bankruptcy or closure. Interests are paid periodically and the face value of the bond is paid upon maturity.


Answer:B

Explanation: