Which of the Following Statements Is NOT CORRECT

Which of the following statements is NOT CORRECT?

A) All else equal, secured debt is less risky than unsecured debt.
B) The expected return on a corporate bond must be less than its
Promised return if the probability of default is greater than zero.
C) All else equal, senior debt has less default risk than subordinated
Debt.
D) A company's bond rating is affected by its financial ratios and
Provisions in its indenture.
E) Under Chapter 11 of the Bankruptcy Act in the US, the assets of a firm that declares bankruptcy must be liquidated, and the sale proceeds must be used to pay off its debt according to the
Seniority of the debt as spelled out in the Act.