Problem:
Rank the following bonds in order from lowest credit risk to highest risk, all with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 12.25 percent, IB Corporate bond with yield of 4.49 percent, TC Corporate bond with yield of 8.76 percent, and B&O Corporate bond with a yield of 5.99 percent.
- IB bond, B&O bond, TC bond, JM bond
- JM bond, TC bond, B&O bond, IB bond
- JM bond, IB bond, B&O bond, TC bond
- TC bond, B&O bond, IB bond, JM bond
Note: Please show how to work it out.