The Following Table Shows Information About Bonds Issued by Governments

question 103

Essay

The following table shows information about bonds issued by governments and companies in Canada,sorted by increasing maturity.(Source: Globe and Mail,retrieved 12 August,2010,http: / / www.globeinvestor.com / servlet / Page / document / v5 / data / bonds / .)Does this information support the theory that less risky bonds yield lower returns? Explain your answer.

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Definitions:

Preston Brooks

A 19th-century American politician known for assaulting abolitionist Senator Charles Sumner in the Senate chamber, which intensified tensions leading up to the Civil War.

Lecompton Constitution

A proposed Kansas State Constitution, drafted in 1857, which would have allowed slavery in the state. It was contested and eventually rejected due to widespread opposition to its pro-slavery stance.

Republican Party

One of the two major contemporary political parties in the United States, commonly associated with conservative ideologies, favoring smaller government, lower taxes, and a strong national defense.

Economic Development

The process of improving economic well-being and quality of life through growth and advancement, often measured by GDP growth, employment rates, and infrastructure improvements.