Question: A 10-year bond rated BBB might have a lower yield than a 10-year bond rated A because: A. Credit ratings estimate default probability, rather than

A 10-year bond rated BBB might have a lower yield than a 10-year bond rated A because:

A. Credit ratings estimate default probability, rather than loss severity

B. The bonds are denominated in different currencies

C. There is a high level of investor demand for the BBB-rated obligor

D. All of the above

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