Question $9(3\mathrm{.}33$ points$)$

Which of the following is FALSE?

Junk bonds are high$-$risk, high$-$yield debt instruments.

All else equal, yecured debt is less risky than unsecured debt.

If a company's bonds are downgraded by the rating agencies, its YTM lyield to maturity$)$ decreases.

One way to manage both price and reinvestment risk is to buy a zero coupon Treasury bond with a duration equal to the investor's investment horizon.