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' (Credit risk/ tax treatment/ term ).

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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' (Credit risk/ tax treatment/ term ).

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Because of variations in credit risk, we would anticipate a bond issued by the US government and a bond issued by an Eastern European government to pay interest rates.

Because there is a larger danger of default, an Eastern European government bond would pay a higher interest rate than a US government bond.

We would expect a bond that repays its principal in 2040 to pay a higher interest rate than a bond that repays its principal in 2020.

We would anticipate a bond from a software firm we run out of our garage to pay a different interest rate than a bond from Coca-Cola due to variations in the bonds credit risk.

A bond issued by a software firm operating out of a garage would pay a higher interest rate than a bond issued by Coca-Cola because the software company has a higher credit risk.

We would anticipate a bond issued by the federal government to pay a greater interest rate than a bond issued by the state of New York since an investor does not have to pay federal income tax on a bond issued by the state of New York.

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