For each of the following scenarios, determine which security will have a higher yield and will be more popular to investors seeking a high return on their investment. Assume that other than the differences in characteristics mentioned, the securities are identical.

Scenario 1

Security 1: A Treasury bond with a 8-year maturity that offers an annualized yield of 8 percent to maturity.

Security 2: A corporate bond with a 8-year maturity that offers an annualized yield of 12 percent to maturity.

Scenario 2

Security 1: A Treasury bond that has a very active secondary market.

Security 2: A debt security that has a long-term maturity and that does not have a very active secondary market.

Scenario 3

Security 1: A taxable security that offers a before-tax yield of 7 percent, sold to an investor with a marginal tax rate of 18 percent.

Security 2: A tax-exempt security with a yield of 4 percent. Security

Scenario 4

Security 1: A 10year Treasury bond.

Security 2: A 30year Treasury bond.