Question

you would expect a bond issued by the federal government to pay _____ interest rate as compared to a bond issued by new york state.

Answer 1

A bond issued by the federal government would pay a lower interest rate compared to a bond issued by New York State.

Step-by-step explanation:

When comparing a bond issued by the federal government to a bond issued by New York State, you would expect the bond issued by the federal government to pay a lower interest rate than the bond issued by New York State. This is because the U.S. government is considered an extremely safe borrower, so it can offer a lower interest rate on its Treasury bonds. On the other hand, bonds issued by states or municipalities, like New York State, usually carry a higher interest rate to compensate for the slightly higher risk.