Bonds with ________ tend to have higher interest rates than bonds with ________.

Question

Quizplus · Accepted Answer

Bonds with high default risk tend to have higher interest rates than bonds with low default risk because investors demand a higher return to compensate for the higher risk of default. Bonds with high liquidity, shorter maturity, or low tax burdens on their interest may also have lower interest rates due to their lower risks or greater marketability.

Bonds with ________ Tend to Have Higher Interest Rates Than