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(9) Which of the following statements is false? A) The risk structure of interest rates is the relationship among interest rates of different bonds with
(9) Which of the following statements is false?
A) The risk structure of interest rates is the relationship among interest rates of different bonds with the same maturity.
B) The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.
C) A decrease in default risk on corporate bonds lowers the demand for these bonds, but increases the demand for default-free bonds.
D) The term structure of interest rates is the relationship among interest rates on bonds with different maturities.
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