Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A) Investors pay less for bonds with credit risk than they would for an otherwise identical default-free bond.
• B) Credit spreads fluctuate as perceptions regarding the probability of default change.
• C) Credit spreads are high for bonds with high ratings.
• D) We refer to the difference between the yields of the corporate bonds and the Treasury yields as the default spread or credit spread.

---

Definitions:

Audience Profile

A detailed description of the characteristics, preferences, and behaviors of a specific group of people targeted by a communication strategy.

Probable Reaction

The likely response or behavior that can be anticipated in a given situation.

Audience Members

Individuals who are part of the audience, especially in a live event or as viewers or listeners of a broadcast or performance.

Three-step Writing Process

A methodology consisting of planning, writing, and completing to enhance the clarity, impact, and efficiency of written communication.