Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a Lower Interest Rate than a bond issued by the government of Japan.
Explanation:
An interest rate is the amount of or the percentage of principal charged by the lender for the usage of his money.
The principal is the amount of money loaned by the lender or a bank . Since banks borrow money from you (in the form of deposits), they also pay you an interest rate on your money.
Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a Lower Interest Rate than a bond issued by the government of Japan.
