4. Which of the following is TRUE? (3 points)

A. a 5-year Government bond must has a lower yield to maturity than that of a 30-year Government bond, with other conditions equal.

B. a 5-year bond with 8% coupon has a lower duration than a 5-year bond with 12% coupon, assuming bonds are from the same issuer.

C. When both are issued by the same firm, a secured bond is safer than an unsecured bond with other conditions equal. Therefore the secured bond has a lower duration than the unsecured bond.

D. Compared to a regular bond, a callable bond, which allows the issuer to buy bonds back earlier, has higher yield to maturity, with other conditions equal.