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1. Two bonds, X and Y, are identical in every way (same face value, coupon rate, maturity, and frequency of payments) except for their credit

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1. Two bonds, X and Y, are identical in every way (same face value, coupon rate, maturity, and frequency of payments) except for their credit rating. Bond X is rated AA and Bond Y is rated BB. Which bond will have the higher yield to maturity? Why? 2. Two bonds, X and Y are identical in every way (same face value, coupon rate, credit rating, and frequency of payments) except for their maturity. Bond X matures in 5 years and Bond Y matures in 15 years. Which bond will have the higher yield to maturity? Why

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