Suppose that the yield to maturity on Bond A is 10.63% on a semi-annual bond basis and the yield to maturity on Bond B is 10.73% with quarterly compounding. Both bonds have five years to maturity. Which of the following statements is correct assuming a semi-annual bond basis

Question 6 options:

The difference in yields between the two bonds is 0.0024

The difference in yields between the two bonds is 0.0010

The two bonds have equal risks