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What is face value 3. (10 points) Given the following information, why is one bond's yield higher than the other'? Which bond is riskier? Why?

What is face value

3. (10 points) Given the following information, why is one bond's yield higher than the other'? Which bond is riskier? Why? Please also indicate whether each bond is traded at par, discount, or premium and explain why Rating Issuer Name Coupon Maturity Moody's/S&PI Yield" Fitch GENERAL MOTORS 7.000% Nov 2025 Ba1/BB+/BB+ 6.313 GENERAL MOTORS 8.000% Nov 2031 Ba1/BB+/BB+ 6.838

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