Of a corporate bond with a$$ Moody's Baa rating and a corporate bond with a C$$ rating, the bond with a

$$

rating should have the higher risk premiumLOADING... on its interest$$ rates, since it has a

$$

higher

lower

default$$ risk, which

$$

increases

reduces

its$$ demand, thereby

$$

increasing

decreasing

its price and raising its interest rate relative to the other bond.