Which of the following statements is FALSE?

Select one:

a$.$ Credit risk premium of a $3-$year corporate bond $($grade BBB$)$ can be less or more than the $3-$year yield of a risk$-$free investment.

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b$.$ A covenant in a loan agreement restricts actions of the borrower that have an impact on the probability of repayment

c$.$ The $3-$year yield of a corporate bond $($grade BBB$)$ is more than the $3-$year yield of a risk$-$free bond.

d$.$ Term structure models consider the effect of historical movements in interest rates in the country on credit risk

e$.$ The probability of default estimated using term structure models depends on market expectations about interest rates