In general, if we compare two loans or bonds with the same loan size and taxability of interest-income, we would expect a higher interest rate on the loan or bond with a

Question

Quizplus · Accepted Answer

Loans or bonds with higher risk and longer maturity typically have higher interest rates to compensate lenders or investors for the increased risk and the longer period before the principal is repaid.

In General, If We Compare Two Loans or Bonds with the Same