Question: Billy Bob holds two bonds with equal-sized coupons and equal maturities. Bond A is a Treasury bond, and Bond B is a corporate bond. Which

Billy Bob holds two bonds with equal-sized coupons and equal maturities. Bond A is a Treasury bond, and Bond B is a corporate bond. Which statement below is most correct?

Bond A has a higher liquidity premium and therefore sells at a higher price.

Bond B has a higher default risk premium and therefore sells at a lower price.

Bond B has a higher liquidity premium and therefore sells at a higher price.

Bond A has a lower default risk premium and therefore sells at a lower price.

Bond A and Bond B have the same maturities and coupons and will therefore sell at the same price.

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