List the bonds in the most likely order of the interest rate

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Reference no: EM13113207

Q. Consider the subsequent four debt securities, which are identical in every characteristic except as noted:

W: A corporate bond rated AAA
X: A corporate bond rate BBB
Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X
Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X or Y

List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work

Reference no: EM13113207

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