9.

9. Which of the following is LEAST true about default risk and credit ratings? a. Default risk is negligible for bonds of governments that can borrow in their own currency since those governments can print their own currency b. This risk is greater for bonds with longer maturity, since the possibility of default increases with time c. Default risk of major bond issuers like corporations and governments is measured using credit ratings d. Credit spread is the difference in yields between securities of similar coupon rates but different credit quality, typically using a Treasury security as the benchmark e. Issuers with solid, stable cash flows tend to have higher credit ratings (investment grade) and their bonds tend to have lower coupon rates and yields