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D. Standard and Poors has issued Orchid Plc with a credit rating of AA and Petunia Plc with a credit rating of BB. The corporate

D. Standard and Poors has issued Orchid Plc with a credit rating of AA and Petunia Plc with a credit rating of BB. The corporate bond issued by Orchid Plc currently has a yield of 3% and the corporate bond issued by Petunia Plc currently has a yield of 4.5%. Based on this information, from which company would an investor buy a bond? Explain your answer. [6 marks]

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