Question: General Electric issues two classes of bonds, Class G and Class E. Home Depot issues two classes of bonds, Class H and Class D. Given

General Electric issues two classes of bonds, Class G and Class E. Home Depot issues two classes of bonds, Class H and Class D. Given the relevant information for each bond in the table below, select the incorrect statement regarding the interest rate of the bonds.

Bond	Maturity	Special Provisions	Liquidity	Default
General Electric, Class G	7 years	Callable by issuer	Highly Liquid	??
General Electric, Class E	12 years	Callable by issuer	Highly Liquid	??
Home Depot, Class H	7 years	Convertible to stock	Highly Liquid	??
Home Depot, Class D	12 years	Convertible to stock	Illiquid	??

Group of answer choices

The interest rate for Class D bonds is strictly greater than the interest rate for Class H bonds

The interest rate for Class E bonds is strictly greater than the interest rate for Class G bonds

If the default risk of General Electrics bonds is strictly greater than the default risk of Home Depots bonds, then the interest rate for Class G bonds is strictly greater than the interest rate for Class H bonds

If the default risk of General Electrics bonds is strictly greater than the default risk of Home Depots bonds, then the interest rate for Class E bonds is strictly greater than the interest rate for Class D bonds

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