A $5-$year CCC$-$rated corporate bond has a yield of $6\%$ while a $5-$year AAA$-$rated

corporate bond has a yield of $3\%.$ Which of the following likely explains the

difference in yields?

Higher default risk for the CCC bond than the AAA bond

Higher inflation expectations for the CCC bond than the AAA bond

Higher interest rate risk for the CCC bond than the AAA bond

Higher time preference for consumption for the CCC bond than the AAA bond