Consider the Following Four Debt Securities, Which Are Identical in Every

Multiple Choice

Consider the following four debt securities, which are identical in every characteristic except as noted:
W: $\quad$ A corporate bond rated AAA
X: $\quad$ A corporate bond rated BBB
Y: $\quad$ A corporate bond rated AAA with a shorter time to maturity than bonds W and X
Z: $\quad$ ?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

Which of the following is the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest?

A) X, W, Y, Z
B) W, X, Z, Y
C) X, Y, Z, W
D) X, Z, W, Y