Bond A matures in 7 years, meaning there are 14 coupon payment periods remaining. Bond B matures in 3 years, meaning only 6 coupon payment periods…

Bond A matures in 7 years, meaning there are 14 coupon payment periods remaining. Bond B matures in 3 years, meaning only 6 coupon payment periods remain. As a result of these differences in maturities, you know that…

Bond A must have a higher YTM than bond B.

Bond B will be priced at a premium.

Bond A is exposed to higher interest rate risk.