Which of the Two Bonds in Each Example Would You

question 34

Essay

Which of the two bonds in each example would you expect to generally pay the higher interest rate? Explain why.
a.
a U.S.government bond or a Brazilian government bond
b.
a U.S.government bond or a municipal bond with the same term and issued by a creditworthy municipality.
c.
a 6-month Treasury bill or a 20-year Treasury bond
d.
a Microsoft bond or a bond issued by a new recording company

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