Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Investment grade bonds are those rated single B and higher.
B) Federal laws typically allow insurance companies and pension funds to purchase non-investment grade bonds.
C) Because investors are risk averse, they require a premium to purchase a security that exposes them to default risk.
D) All else equal, the higher a bond's rating the higher the coupon rate.