Which of the following is most likely correct about the bond default risk?

I. Some financial ratios can help us to evaluate a bonds default risk.

II. For valuing bonds with default risk, expected coupons may be reduced, and the face value may be increased.

III. Bond ratings are not very useful in providing information about a bonds default risk.

IV. Bonds issued by high default-risk firms are more likely priced with lower yields than bonds issued by low default-risk firms, with all else being equal.

I, III, IV

I and IV

I and III

I only