Which of the two bonds in each example would you expect to pay the higher interest rate? Explain why.
a. a Canadian government bond or a bond issued by the government of Guatemala
b. a government of Canada bond or a municipal bond of the same face value and term
c. a 6-month Treasury bill or a 20-year bond
d. an Air Canada company bond or a bond issued by a new high tech start-up

Question

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The Answer of Which of the two bonds in each example would you expect to pay the higher interest rate? Explain why.
a. a Canadian government bond or a bond issued by the government of Guatemala
b. a government of Canada bond or a municipal bond of the same face value and term
c. a 6-month Treasury bill or a 20-year bond
d. an Air Canada company bond or a bond issued by a new high tech start-up

Which of the Two Bonds in Each Example Would You