Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) Investing in bankers acceptances exposes the investor to market risk, which is the risk that neither the borrower nor the accepting bank will be able to pay the principal due at the maturity date.
B) The market interest rates that acceptances offer investors reflect credit risk because BAs have lower yields than risk-free Treasury bills.
C) The spread between bankers acceptance rates and Treasury rates represents a combined reward to investors for bearing the higher risk and relative illiquidity of the acceptance.
D) The investor in a bankers acceptance is not exposed to credit risk