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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Fill in the blank with correct words and explain it in 2-3 sentences each

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
v 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.
Transcribed Image Text: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 v 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.
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