We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
A.
the credit risk associated with Bond A is lower than the credit risk associated with Bond B
B.
Bond A was issued by the city of Philadelphia and Bond B was issued by Red Hat Corporation.
C.
Bond A has a term of 20 years and Bond B has a term of 2 years.
D.
All of the above are correct.