Assume that two bonds have the same liquidity coupon rate


Assume that two bonds have the same liquidity, coupon rate, maturity date, covenants,and tax status. If one gets a ____ rating from Standard and Poor's, Moody's and Fitch it will most likely provide a ____ yield than the other.

a.? lower; lower

b.? higher; higher

c.? B and C

d.? higher; lower

e.? none of the above

f.? there is insufficient information to answer this question

g. ?AAA or equivalent; higher

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Financial Management: Assume that two bonds have the same liquidity coupon rate
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