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Which of the Two Bonds in Each Example Would You

Question 185

Essay

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 Brazilian government bond
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.a Canadian National Railway Company bond or a bond issued by a new record company

Correct Answer:

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a.The Brazilian government bond would li...

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