Which Statement Describes the Rate of Return Expected When Lending

Which statement describes the rate of return expected when lending funds to a firm as compared with the rate when lending to a reputable state?

A) It must be lower because a lender to a firm cannot expect to not to be exposed to any risk.
B) It must be higher because a lender to a state cannot expect not to be exposed to any risk.
C) It must be lower because the term lengths will generally be shorter.
D) It must be higher because a lender to a firm cannot expect not to be exposed to any risk.