Bond Return 7: You consider buying one of two very similar $1,000-face 10%-coupon bonds that have five years of remaining maturity. Rates are 10%. Youve estimated that Bond A has a default probability of 5% while Bond B has no default probability. If both bonds were trading at Par, there would be ____ for Bond A, _______ for bond B, and spreads will ______ excess demand;

excess supply, rise excess demand;rise

excess supply, fall excess supply;fall

excess demand, rise excess supply; excess demand, fall

None of the above