Which of the following statements is FALSE? To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a higher interest rate than the rate on U

Which of the following statements is FALSE? To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a higher interest rate than the rate on U.S. Treasuries. Because interest rates may be quoted for different time intervals, it is often necessary to adjust the interest rate to a time period that matches that of our cash flows. O For loans to borrowers other than the U.S. Treasury, the stated interest rate is the minimum amount that investors will receive. The effective annual rate indicates the amount of interest that will be earned at the end of one year. O Interest rates vary with the investment horizon.