Which of the following is TRUE?

Default risk is the same for all bonds in the market at a given time point.

Rating companies such as Moody's rate bonds based on the total risk of a bond, including interest rate risk and default risk.

Investment grades bonds are better investments than junk bonds.

Bonds with AAA rating have high probability of default. Therefore, the yield to maturity is high.

Junk bonds are also called high yield bonds because those bonds have a higher yield compared to investment grade bonds.

A 2-year zero corporate bond and a 2-year zero treasury bond should be traded at the same price today because they have the same future cash flow.