Question: You have two bond options: - Option 1 - AAA Rated bond paying a 5% coupon rate - Option 2 - CCC Rated bond paying

You have two bond options: - Option 1 - AAA Rated $bond paying a 5\% coupon rate - Option 2 - CCC Rated$

You have two bond options: - Option 1 - AAA Rated bond paying a 5\% coupon rate - Option 2 - CCC Rated bond paying a 5% coupon rate. Both bonds have a ten year maturity. Which bond would you expect would have a higher YTM? Option 1 Option 2 When making bond purchase decisions, the primary decision-making factor is to review the YTM. You should always choose the bond that has the higher YTM. True False

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