Question: A AAA corporate bond should pay a higher yield than a BBB corporate bond. Choose one answer. Yes, because the AAA bond has a better

A AAA corporate bond should pay a higher yield than a BBB corporate bond. Choose one answer.

    1. Yes, because the AAA bond has a better rating.
    2. Yes, because the AAA is safer than a BBB bond.
    3. Yes, but it is unclear why.
    4. No, because safe bonds (for instance, AAA), require lower yields than riskier bonds (like BBB).

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