A bond has a maturity date of one year and a low risk of default. Which of the following statements correctly describes this bond?(1 point)

Responses

It is traded as a junk bond.
It is traded as a junk bond.

It is bought on the money market.
It is bought on the money market.

It is sold on the capital market.
It is sold on the capital market.

It is a short-term investment.

1 answer

The correct statement that describes the bond with a maturity date of one year and a low risk of default is:

It is a short-term investment.

This is because a bond with a maturity of one year is typically classified as a short-term investment.