Final answer:
The statement is false; a bond with a greater risk of default will have a higher, not lower, interest rate to compensate investors for the additional risk.
Step-by-step explanation:
The statement that a bond perceived to be more risky will have a lower interest rate is false. If a bond is perceived as more risky, meaning there's a higher chance that the company may not be able to repay the debt, the interest rate on that bond will typically be higher, not lower. This is to compensate the investor for taking on the additional risk. Bonds with a higher risk of default are often referred to as high-yield or junk bonds. They offer a high rate of return to compensate for the increased risk of default. Conversely, bonds issued by entities perceived to be safe borrowers, such as the U.S. government, tend to have lower interest rates because the risk of default is considered to be low.