Which of the Following Statements Is Correct

question 99

Multiple Choice

Which of the following statements is correct?

• A)All else being 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 being 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.