Bonds and loans have interest rates that vary according to how many years until they mature, their..

Bonds and loans have interest rates that vary according

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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

interest rate:

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.

Treasury note

d. A 1-year personal loan you make to a friend

and a 1-year corporate bond