Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

• A) All else equal, secured debt is more risky than unsecured debt.
• B) The expected return on a corporate bond must be more than its promised return if the probability of default is greater than zero.
• C) All else equal, senior debt has more default risk than subordinated debt.
• D) A company's bond rating is affected by its financial ratios and provisions in its indenture.

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Definitions:

Political Attitudes

The views and opinions people hold about politics, policy, and the roles of governments and institutions in society.

Transfer

The act of moving or reassigning someone or something from one position, place, or jurisdiction to another.

Social Welfare

Organized efforts and policies aimed at providing assistance and support to individuals and families in need.

Civil Liberties

Fundamental rights and freedoms protected by law from governmental interference, including freedom of speech and religion.