19. There are two different companies: one with a BBB rating and the other with a rating A. The company with the lowest rating has already issued bonds many times and you can easily calculate a discount factor function for them (all discount factors for all maturities). The company with the better credit quality now also wants to issue a bond at 5 years. You have to calculate the coupon for that company that they would have to pay when they want to spend on par. You use the discount factor function of the lower rate company because the two companies are operational in the same country and in the same sector. What reasoning error are you making? Should the A-company coupon be lower or higher than the BBB company's coupon