4 . Problems and Applications Q1

You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds' 7 . You would expect a bond that repays the principal in year 2040 to pay v interest rate as compared to a bond that repays the principal in year 2020. You would expect a bond from Coca-Cola to pay 7 interest rate as compared to a bond from a software company you run in your garage. You would expect a bond issued by New York State to pay 7 interest rate as compared to a bond issued by the federal government