We Would Expect the Interest Rate on Bond a to Be

Multiple Choice

We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that

A) Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation.
B) Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York.
C) Bond A has a term of 20 years and Bond B has a term of 1 year.
D) All of the above are correct.