Regarding bond ratings, which of the following statements is false?

Multiple Choice

• High risk bonds are also termed junk bonds.
• Prices of AAA-rated bonds do not fluctuate as much as the lower rated bonds.
• AAA-rated bonds have a lower probability of default than lower rated bonds.
• Government-issued bonds can be downgraded below AAA-rated.
• AAA-rated bonds provide higher level of creditor-protection than lower rated bonds.