Which of the Following Statements Is False

Which of the following statements is false?

A) Investors pay less for bonds with credit risk than they would for an otherwise identical default-free bond.
B) Credit spreads fluctuate as perceptions regarding the probability of default change.
C) Credit spreads are higher for bonds with higher ratings.
D) We refer to the difference between the yields of the corporate bonds and the treasury yields as the default spread or credit spread.