1. For each of the following pairs, which bond would you expect to pay a higher interest rate? Explain.

a. a bond of the U.S. government or a bond of an eastern European government

b. a bond that repays the principal in 2005 or a bond that repays the principal in 2025

c. a bond from Coca-Cola or a bond from a software company you run in your garage

d. a bond issued by the federal government or a bond issued by New York State