Question
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?
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The Making Of Finance
Authors: Isabelle Chambost, Marc Lenglet, Yamina Tadjeddine
1st Edition
1138498572, 978-1138498570
