How are houses like bonds with respect only to their home, Financial Management

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How are houses like bonds with respect only to their home

1. In each of the three cases, which bond will usually pay a higher interest rate?

a. A bond rated AAA, or a bond rated BBB?

b. A U.S. government bond, or a General Motors bond?

c. A Citibank bond that gets repaid in 30 years or a Citibank bond that gets repaid in 1 year?

2. How are houses like bonds? With respect only to their home equity (i.e., ignoring all other assets and investments), would homeowners tend to favor high or low interest rates?

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