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

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

a. A bond of the UK government or a bond of an east European government.

b. A bond that repays the principal in year 2011 or a bond that repays the principal in year 2031.

c. A bond from BP or a bond from a software company you run in your garage.

d. A bond issued by the national government or a bond issued by a local authority.

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 02, 2024 07:00 AM

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

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Economics

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