Question: A 5 - year CCC - rated corporate bond has a yield of 6 % while a 5 - year AAA - rated corporate bond

A 5-year CCC-rated corporate bond has a yield of 6% while a 5-year AAA-rated
corporate bond has a yield of 3%. Which of the following likely explains the
difference in yields?
Higher default risk for the CCC bond than the AAA bond
Higher inflation expectations for the CCC bond than the AAA bond
Higher interest rate risk for the CCC bond than the AAA bond
Higher time preference for consumption for the CCC bond than the AAA bond
A 5-year CCC-rated corporate bond has a yield of 6% while

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