Question

Other things the same, which bond would you expect to pay the highest interest rate? a. a bond issued by the U.S. government b. a bond issued by Microsoft Corporation c. a bond issued by the state of Montana d. a bond issued by a new chain of Brazilian-style restaurants

Answer 1

A bond issued by a new chain of Brazilian-style restaurants  pays highest interest rate.

Option D

Explanation:

A bond is an expression of the bond issuer's indebtedness for the holders of securities. The interest rate is the amount that the lender pays for his capital need. The largest factor is the sum of money loaned. The banks therefore pay you a deposit interest rate. You borrow the money from you.

Though they may be highly competitive, their interest rates are not equivalent. If a bank assumes that the debt is less likely, it pays higher interest rates. Therefore, banks will always offer revolving loans such as credit cards, a higher interest rate.

Such types of points are more difficult to manage. Financial institutions also charge people they think to be dangerous higher rates. The higher your ranking, the smaller your interest rate.