Question 1 (1 point) Saved There is an inverse relationship between bond credit ratings and the yield on a bond. The yield is highest for D-rated junk bonds, and yields decrease as the bond ratings get higher. True False Question 2 (1 point) According to the Capital Asset Pricing Model, investors are primarily concerned with the market risk, and not the firm specific risks of the individual stocks. True False Question 3 (1 point) All other things held constant, the lower the firm's tax rate, the lower the firm's after-tax cost of debt, which decreases the firm's WACC. True False