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' You would expect a bond that repays the principal in year 2020 to pay . interest rate as compared to a bond that repays the principal in year 2040. You would expect a bond of a software company you run in your garage to pay interest rate as compared to a bond issued by Coca- Cola. You would expect a bond issued by New York State to pay interest rate as compared to a bond issued by the federal government.
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' You would expect a bond that repays the principal in year 2020 to pay . interest rate as compared to a bond that repays the principal in year 2040. You would expect a bond of a software company you run in your garage to pay interest rate as compared to a bond issued by Coca- Cola. You would expect a bond issued by New York State to pay interest rate as compared to a bond issued by the federal government.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
Problem 1PA
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