Match the yield to maturity in column 2 with the security provisions (or lack thereof) in column 1. Higher returns tend to go with greater risk.
(1) Security Provision (2) Yield to Maturity
a. Debenture a. 6.85%
b. Secured Debt b. 8.20%
c. Subordinated Debenture c. 7.76%
In terms of risk, a subordinated debenture is most risky since it is unsecured and is also ...
The solution explains the relationship between YTM and secured and unsecured debt