Asked by Gloria Martin-Mays on May 27, 2024
Verified
Other things the same, corporate bonds generally feature higher interest rates than U.S. government bonds.
Corporate Bonds
Debt securities issued by corporations to fund their operations, expansions, or projects, carrying a promise to return the principal along with agreed-upon interest payments.
- Comprehend the responsibilities of lenders and borrowers in the context of the bond market.
Verified Answer
JW
Jaces world HollywoodMay 29, 2024
Final Answer :
True
Explanation :
Corporate bonds typically offer higher interest rates than U.S. government bonds because they carry a higher risk of default, so investors demand a higher return for taking on that additional risk.
Learning Objectives
- Comprehend the responsibilities of lenders and borrowers in the context of the bond market.