Ask Question
4 April, 09:50

We would expect the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds have identical characteristics except that

a.

the credit risk associated with Bond A is higher than the credit risk associated with Bond B.

b.

Bond A was issued by the state of New York and Bond B was issued by the Exxon Mobil Corporation.

c.

Bond A has a term of 20 years and Bond B has a term of 2 years.

d.

All of the above are correct.

+3
Answers (1)
  1. 4 April, 10:24
    0
    C. Bond A has a term of 20 years and Bond B has a term of 2 years.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “We would expect the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds have identical characteristics ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers