The Z-spread of Bond A is 1.05% and the Z-spread of Bond B is 1.53%. All else equal, which statement best describes the relationship between the two bonds?
A. Bond B is safer and will sell at a lower price.
B. Bond B is riskier and will sell at a lower price.
C. Bond A is riskier and will sell at a higher price.
Ans: B. Bond B is riskier and will sell at a lower price.
Business
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