Coporation A bonds are rated AAA. The corporation A bonds are actively traded on the New York Exchange and have 20

years to maturity. The yield to maturity on Corporation A bonds is12%. Corporation B bonds are rated BB. Corporation

B bondsare not actively traded on any exchange and have 4 years to maturity. The yield to maturity on Corporation B bonds is15%. Based on the aboveinformation, we knowthat:

A.

Corp. B bonds have a higher default risk premium and a higher liuidity premium

B.

Corp. A bonds have a higher maturity risk premium and a higher liquidity premium

C.

Corp. A bonds have a higher coupon rate than Corp. B bonds

D.

Corp. B bonds have a higher coupon rate than Corp. A bonds