For each of the following pairs, which bond would you expect to paya higher interest rate? Explain.
a. A bond of the U. S. government or a bond of an East Europeangovernment.
b. A bond that repays the principal in year 2013 or a bond thatrepays the principal in year 2030
c. A bond from Coca-Cola or a bond from a software company you runin your garage.
d. A bond issued by the federal government or a bond issued by NewYork state.
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For each of the following pairs, which bond would you expect to paya higher interest rate? Explain....
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