Which of the following statements regarding default risk is accurate? A company's bond rating is affected by its financial ratios but not by provisions in its indenture. Under Chapter 7 of the Bankruptcy Act, the assets of a firm that declares bankruptcy must be liquidated, and the sale proceeds must be used to pay off claims against it according to the priority of the claims as spelled out in the Bankruptcy Act. Senior debt has more default risk than subordinated debt, all else being equal. Secured debt is more risky than unsecured debt, all else being equal. Under Chapter 13 of the Bankruptcy Act, the assets of a firm that declares bankruptcy must be liquidated, and the sale proceeds must be used to pay off claims against it according to the priority of the claims as spelled out in the Bankruptcy Act