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Bonds X and Y are very similar: they have the same face value, the same coupon rate, the same maturity, and both make semi-annual payments.

Bonds X and Y are very similar: they have the same face value, the same coupon rate, the same maturity, and both make semi-annual payments. Bond X has a credit-rating of AA. Bond Y has a credit rating of BB. Which bond will have the higher yield to maturity? Why?

Bonds X and Y are very similar: they have the same face value, the same coupon rate, and both make semi-annual payments. Both bonds are rated AA. Bond X matures in 5 years and bond Y matures in 15 years. Which bond will have the higher yield to maturity? Why?

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