Which of the Following Statements Is FALSE

question 79

Multiple Choice

Which of the following statements is FALSE?

• A)The bond's expected return,which is equal to the firm's debt cost of capital,is less than the yield to maturity if there is a risk of default.
• B)The two best-known bond-rating companies are Standard & Poor's and Dow Jones.
• C)Bonds in the bottom five categories are often called speculative bonds,junk bonds,or high-yield bonds.
• D)Bond ratings encourage widespread investor participation and relatively liquid markets.