Unformatted text preview: 3. A bond from a software company you run in your garage would pay a higher interest rate than a bond from Coca-Cola because your software company has more credit risk. 4. A bond issued by the federal government would pay a higher interest rate than a bond issued by New York State because an investor does not have to pay federal income tax on the bond from New York state....
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- Spring '08
- U.S. state, Federal government of the United States, higher interest rate