Which of the following statements is false? A.   The sovereign credit rating is a risk of a national government becoming unable to satisfy its loan obligations.   B.   Bond prices are inversely related to spreads.   C.   Issuer credit ratings are based on the overall creditworthiness of the firm.   D.   Liquidity is observed when there is a large difference between the offered sale price and the bid price.

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A: The answer is given below: