Which of the Following Statements Is FALSE

question 60

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 call speculative bonds, junk bonds, or high-yield bonds.
• D) Bond ratings encourage widespread investor participation and relatively liquid markets.

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Human Capital

Knowledge, skills, and experience that make an individual more productive and thereby able to earn a higher income over a lifetime.

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Indicators or attributes used by job seekers and employers to convey and infer information regarding the quality and characteristics of employment opportunities and potential employees.

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