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You have two bond options: Option 1 - AAA Rated bond paying a 5% coupon rate Option 2 - CCC Rated bond paying a 5%
You have two bond options:
Option 1 - AAA Rated bond paying a 5% coupon rate
Option 2 - CCC Rated bond paying a 5% coupon rate.
Both bonds have a ten year maturity.
Which bond would you expect would have a higher YTM?
Option 1 | ||
Option 2 |
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