Assume that Tesla currently has $1,000,000,000 of 10-year bonds outstanding. These are all zero-coupon bonds. These Tesla bonds have a market yield-to-maturity of 10%.

Also assume that Ford currently has $500,000,000 of 7-year bonds outstanding. These bonds pay an annual coupon of 5%. These Ford bonds have a market yield-to-maturity of 6%.

Explain why the outstanding bonds for these two somewhat similar car companies might have very different market yield-to-maturities.