Question: What considerations account for the fact that interest rates differ greatly on various types of loans? Use those considerations to explain the relative sizes of
What considerations account for the fact that interest rates differ greatly on various types of loans? Use those considerations to explain the relative sizes of the interest rates on the following:
a. A 10-year $1000 government bond
b. A $20 pawnshop loan
c. A 30-year mortgage loan on a $145,000 house
d. A 24-month $12,000 bank loan to finance the purchase of an automobile
e. A 60-day $100 loan from a personal finance company
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