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1. You are considering the following investments: Bond A: U.S. Treasury Bill, 1-year maturity Bond B: U.S. Treasury Note, 10-year maturity Bond C: AA-rated Corporate

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1. You are considering the following investments: Bond A: U.S. Treasury Bill, 1-year maturity Bond B: U.S. Treasury Note, 10-year maturity Bond C: AA-rated Corporate Bond, 10-year maturity Bond D: B-rated Corporate Bond, 5-year maturity Bond E: New York State General Obligation Bond, 10-year maturity a. Compare Bond A and Bond B. Which would you expect to have the higher yield? Why? b. Compare Bond B and Bond C. Which would you expect to have the higher yield? Why? C. Compare Bond C and Bond D. Which would you expect to have the higher yield? Why? # Compare Bond E and Bond B. Which would you expect to have the higher yield? Why

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