Bonds and loans have interest rates that vary according to how many years until they mature, their..
- May 25, 2021/ Finance
to how many years until they mature,
their risk, their liquidity, and other factors. For
each of the following pairs of loans and bonds,
explain which would be likely to have the higher
a. A balance on a credit card and a car loan
b. A 10-year Treasury bond and a 10-year bond
issued by the Ford Motor Company
c. A 1-year U.S. Treasury bill and a 10-year U.S.
d. A 1-year personal loan you make to a friend
and a 1-year corporate bond