1. A bond with a credit rating of BBB carries more risk than a bond with a credit rating of AAA.

True or False

2. you have two bond options:

Option 1 - AAA Rated bond paying a 5% coupon rate

Option 2 - CCC Rated bond paying a 5% coupon rate.

Both bonds have a ten year maturity. Which bond would you expect would have a higher YTM?

option 1 or 2?