Question: Rank the following securities from lowest 1 to highest 8

Rank the following securities from lowest (1) to highest (8) in terms of their riskiness for an investor. All securities (except the Treasury bond) are for a given firm. If you think two or more securities are equally risky, indicate so.
a. Income bond ____________
b. Subordinated debentures—noncallable ____________
c. First mortgage bond—no sinking fund ____________
d. Common stock ____________
e. U.S. Treasury bond ____________
f. First mortgage bond—with sinking fund ____________
g. Subordinated debentures—callable ____________
h. Term loan ____________

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  • CreatedNovember 24, 2014
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