Regarding bond ratings, which of the following statements is false? Multiple Choice Government-issued bonds can be downgraded below AAA-rated. High risk bonds are also termed junk bonds. AAA-rated bonds have a lower probability of default than lower rated bonds. Prices of AAA-rated bonds do not fluctuate as much as the lower rated bonds. AAA-rated bonds provide higher level of creditor-protection than lower rated bonds. Which of the following is false regarding the price a bond? Multiple Choice When market interest rates rise, bond prices will fall, all else the same. Bonds with long maturities are generally (all else the same) more sensitive to changes in interest rates than bonds with shorter maturities. The lower the discount rate, the more valuable the coupon payments are today. All else the same, bonds with larger coupon payments will have a higher price today. Bonds with high coupon payments are generally (all else the same) more sensitive to changes in interest rates than bonds with lower coupon payments