Which of the following statements about bond ratings and the rating agencies are true? (i) The rating agencies provide assessments of only default risk. (ii) Bonds with ratings of BB+ are are considered investment grade securities. (iii) Junk bonds tend to have lower yields than investment grade bonds. None are true. Only (i) is true. None are true. Only (i) is true. Only (i) and (ii) are true. Consider two pairs of bonds; A and B, and C and D. A and B are both coupon bonds, they have the same coupon rate, but A has a longer time-to-maturity than B, and at the prevailing rate they sell at the same price. C is a coupon bond and D is a zero coupon bond, they both have the same time-to-maturity, and at the prevailing rate they sell at the same price. If interest rates rise by the same amount for all of the bonds, which bond in each pair will fall by the greater amount in price? A and D B and C If bonds are priced in an efficient market, their price is not altered by transitory events. B and D A and C