Rank the following kinds of bonds in order from least secure to most secure:

a. Corporate, Municipal, Treasury

b. Treasury, Corporate, Municipal

c. Treasury, Municipal, Corporate

d. Municipal, Corporate, Treasury

a. Corporate, Municipal, Treasury

Explanation:

Bonds are debts instruments issued by either the federal government, municipal, or corporates to raise funds or additional capital. As an investment option, bonds promise to pay investors a fixed interest in regular intervals over the life bond. At maturity, the bond issuer pays the investor the bond's maturity value.

A bond is considered safe if the issuer is less likely to default on interest payments and the maturity amount. Government bonds are the safest. The probability of the government defaulting on payments is highly unlikely. State governments issue municipal bonds and are considered safer than corporate bonds. Corporations and multinationals issue corporate bonds; they are relatively safe and may offer a higher interest rate to attract investors.