Risk premiums In January 2016, Anheuser-Busch issued an outstanding bond that pays a 3.3% coupon rate, matures in January 2023, and has a yield to maturity of 2.82%. In January 2017, Santander Holdings issued an outstanding bond that pays a 3.579% coupon rate, matures in January 2023, and has a yield to maturity of 3.349% a. Does the Anheuser-Busch bond sell at a premium, at par, or at a discount? How do you know? What about the Santander bond? b. Which bond would you guess has a higher rating? Why? c. Can you draw any conclusion about the shape of the yield curve, either now or when these bonds were first issued from the information given in the problem? Why or why not? a. Does the Anheuser-Busch bond sell at a premium, at par, or at a discount? How do you know? (Select the best answer below.) A. The Anheuser-Busch bond sells at par. Bonds sell at par when the coupon rate (3.3%) is higher than the yield to maturity (2.82%). B. The Anheuser-Busch bond sells at a discount. Bonds sell at a discount when the coupon rate (3.3%) is higher than the yield to maturity (2.82%). C. The Anheuser-Busch bond sells at a premium. Bonds sell at a premium when the coupon rate (3.3%) is higher than the yield to maturity (2.82%). D. The Anheuser-Busch bond sells at a premium. Bonds sell at a premium when the coupon rate (2.82%) is lower than the yield to maturity (3.3%). What about the Santander bond? (Select the best answer below) A. The Santander bond sells at par. Bonds sell at par when the coupon rate (3.579%) is higher than the yield to maturity (3.349%). B. The Santander bond sells at a discount. Bonds sell at a discount when the coupon rate (3.579%) is higher than the yield to maturity (3.349%). C. The Santander bond sells at a premium. Bonds sell at a premium when the coupon rate (3.579%) is higher than the yield to maturity (3.349%). D. The Santander bond sells at a premium. Bonds sell at a premium when the coupon rate (3.349%) is lower than the yield to maturity (3.579%). b. Which bond would you guess has a higher rating? Why? (Select the best answer below.) O A. Santander is rated higher. High-quality (high-rated) bonds provide lower returns than lower-quality (low-rated) bonds, reflecting the lender's risk-return tradeoff. O B. Anheuser-Busch is rated higher. High-quality (high-rated) bonds provide lower returns than lower-quality (low-rated) bonds, reflecting the lender's risk- return tradeoff. OC. Anheuser-Busch is rated higher. High-quality (high-rated) bonds provide higher returns than lower-quality (low-rated) bonds, reflecting the lender's risk- return tradeoff. O D. Anheuser-Busch and Santander would be rated the same. Both companies are well-known and would be considered a good investment