Question

List the following stocks and bonds in order form lowest default risk to highest default risk.

A corporate bond in a 150-year old firm with good business practices.
A bond in an unstable foreign government.
A preferred stock in a developing company with high prospects.

Answer 1

Answer: Corporate, preferred, foreign.

Explanation:

"Corporate bond-has the lowest default risk because of its good legacy in business. Just try to imagine 150 years of service. They have prove it. preferred stock- because of high number of prospects and the fact the its under development

foreign government bond-has the highest default risk considering that the government is unstable"