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Suppose we have two bonds. A 5 year Bell Canada bond with a Moody's rating of Baa1 and a 3 year Blackberry bond with a

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Suppose we have two bonds. A 5 year Bell Canada bond with a Moody's rating of Baa1 and a 3 year Blackberry bond with a Moody's rating of Ba2. Which bond would you expect to have a higher interest rate? Offer two reasons using our risk structure of interest rates [2] 2

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