Consider the following bond pairs below. Which ones would you expect to have a higher interest rate (yield to maturity) and why?

A. A 5-year Treasury note and a 5-year TIPS.

B. A 5-year Treasury note and a 30-year Treasury bond.

C. A 10-year AAA-rated municipal bond and a 10-year AAA-rated corporate bond. (The AAA credit rating means they both have the same risk of default).

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D. A 10-year investment grade corporate bond and a 10-year speculative-grade (junk) corporate bond.

E. A 20-year on-the-run Treasury bond and a 20-year off-the-run Treasury bond. Remember, on-the-run bonds are the most recent issue and are traded the most actively.

F. A 10-year senior bond for a corporation and a 10-year junior bond for the same corporation.

G. A 10-year secured bond for a corporation and a 10-year unsecured bond for the same corporation.