For each of the following pairs, which bond would you expect to pay a higher interest rate? Explain.
a. a bond of the U.S. government or a bond of an East European government.
b. a bond that repays the principal in year 2015 or a bond that repays the principal in year 2040.
c. a bond from Coca-Cola or a bond from a software company you run in your garage.
d. a bond issued by the federal government or a bond issued by New York State.