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Which of the following statements is FALSE? i) Bonds with higher (better) credit ratings tend to have higher yields. ii) Firms with higher credit risk

Which of the following statements is FALSE?

i) Bonds with higher (better) credit ratings tend to have higher yields.

ii) Firms with higher credit risk tend to have higher credit spreads.

iii) Corporate bonds are considered riskier than treasury bonds.

iv) Common stock holders do not typically have voting rights, while preferred stock holders do.

  • A.

    i, ii and iv

  • B.

    i and ii

  • C.

    ii and iv

  • D.

    i and iv

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