Difference in the interest rate between two company bonds


Problem:

Two different companies of approximately similar financial strength and with similar management teams both have 30-year bonds that trade in active secondary markets. Company A is located in a country with relatively small increases in overall price levels; its bonds have a 4% return. Company B is located in a country with relatively large increases in overall price levels each year; its bonds have a 14% return.

What is the difference in the interest rate between Company A bonds and Company B bonds called?

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Finance Basics: Difference in the interest rate between two company bonds
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