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107-10. Interpreting Relations among Bond Price, Coupon, Yield, and Credit Rating The following appeared in Markets Insider (https://markets.businessinsider.com/bonds) regarding outstand- ing bonds issued by Citigroup

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107-10. Interpreting Relations among Bond Price, Coupon, Yield, and Credit Rating The following appeared in Markets Insider (https://markets.businessinsider.com/bonds) regarding outstand- ing bonds issued by Citigroup Inc. LO3,5 CITIGROUP INC (c) Moody's Ratings Price Coupon (%) 6.80 5.15 Maturity 2038 2026 Yield to Maturity (%) 2.40 1.59 A3 A3 166.43 122.70 a. Discuss the relation among the coupon rate, price, and yield for the bond maturing in 2038. b. Compare the yields on the two bonds. Why are the yields different when the credit ratings are the same

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