The yield on a 10-year US Treasury bond is 2.5%. ABC Co. and XYZ Co. each issue a 10-year bond. ABCs bond has a yield of 3.5%; while XYZs bond has a yield of 5%. Select the statement below that BEST describes this situation.

A. The credit spread of XYZs bond is 5%.

B. XYZ Co. should have greater maturity risk than ABC Co.

C. The credit spread of ABCs bond is 3.5%.

D. The credit spread of ABC's bond is 1%; and XYZ Co. should have greater default risk than ABC Co.

E. XYZ Co. should have a higher credit rating than ABC Co.