Question

Order the bond types below from lowest to highest risk of default.

Lowest risk of default
+ U.S. Treasury bonds
1. Junk bonds
* Corporate bonds
Highest risk of default​

Answer 1

According to the risk of default from lowest to highest:

1. U.S. Treasury bonds.

2. Corporate bonds.

3. Junk bonds

Step-by-step explanation:

Bonds are ways through which a governments and corporations are able to raise money in-order to finance the big projects.

It is issued to the public through a mapped out auction based in months or years validity. And, by buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments.