Company XYZ is a U.

XYZ bonds have a yield higher than the coupon rate, indicating that their market price has decreased due to concerns about the issuer's creditworthiness.

A is correctbecause the high yield suggests elevated credit risk.

Bis incorrect because domestic utility companies are unlikely to face political risk.

Cis irrelevant as the bonds are denominated in U.S. dollars.

Dis incorrect as prepayment risk is associated with callable bonds, not noncallable bonds.