When evaluating credit risk in the corporate bond market which of the following statements is the most accurate description of the expected yield spread on a specific bond compared to similar rated bonds.

When comparing two firms that both have a higher than average Debt$/$equity ratio and lower than average interest coverage ratio, the firm with the more stable and consistent cash flows will be less likely to face an increased risk premium versus similar maturity treasuries.

When comparing two firms that both have a lower than average Debt$/$equity ratio and higher than average interest coverage ratio, the firm with the more stable and consistent cash flows will be more likely to face an increased risk premium versus similar maturity treasuries.

When comparing two firms that both have a higher than average Debt$/$equity ratio and lower than average interest coverage ratio, the firm with the more stable and consistent cash flows will be more likely to face an increased risk premium versus similar maturity treasuries.

When comparing two firms that both have a lower than average Debt$/$equity ratio and higher than average interest coverage ratio, the firm with the more stable and consistent cash flows will be less likely to face a decreased risk premium versus similar maturity treasuries.