Match the yield to maturity in column 2 with the security provisions (or lack th
ID: 2639338 • Letter: M
Question
Match the yield to maturity in column 2 with the security provisions (or lack thereof) in column 1. Higher returns tend to go with greater risk.
(1)
(2)
Security Provision
Yield to Maturity
a. Debenture
a. 6.85%
b. Secured debt
b. 8.20%
c. Subordinated debenture
c. 7.76%
(1)
(2)
Security Provision
Yield to Maturity
a. Debenture
a. 6.85%
b. Secured debt
b. 8.20%
c. Subordinated debenture
c. 7.76%
Explanation / Answer
Security Provision Match Reason a. Debenture 7.76% b. Secured debt 6.85% Most Secured c. Subordinated debenture 8.20% Least Secured