Which has a higher yield $(1)$ a T bill or a $5$ year U$.$S$.$A$.$ bond, $(2)$ explain why in terms of the $3$ risks discussed in class.

Option A

$(1)$ T$-$Bill, $(2)$ Because: Market risk both zero, Term risk same, Liquidity risk higher.

Option B

$(1)5$ Year bond, $(2)$ Because: Credit risk both zero, Term risk more, Liquidity risk higher.

Option C

$(1)$ T$-$Bill, $(2)$ Because: Market risk higher, Credit risk same, Liquidity risk lower.

Option D

$(1)5$ Year bond, $(2)$ Because: Credit risk both low, No Term Risk for both, Liquidity risk higher.