Question: ABC is a BBB+ rated company whose bonds have a 10-year maturity and trade at 5.0% yield. XYZ is an AA- rated company whose bonds

ABC is a BBB+ rated company whose bonds have a 10-year maturity and trade at 5.0% yield.

XYZ is an AA- rated company whose bonds also have a 10-year maturity and trade at a 5.5% yield.

Apply the concept of "no free lunch" to explain if this situation is possible.

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