The government of Canada pays lower rates of interest than Canadian corporations when each of them borrows from the public because

Question

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The government of Canada is considered to have a very low level of risk in borrowing, as it has the ability to tax its citizens to repay any debt it incurs. Therefore, it is able to borrow at a lower interest rate than Canadian corporations, which have a higher risk of defaulting on their debt. The interest rate that the government of Canada typically pays is often referred to as the risk-free rate.

The Government of Canada Pays Lower Rates of Interest Than