Quiz Ch 23 – Percentage of AAA Rated Bonds Remaining AAA (1983-2012)
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
What percentage of AAA-rated bonds maintained their AAA rating from 1983 to 2012?
What percentage of AAA-rated bonds maintained their AAA rating from 1983 to 2012?
Which model is used by Beaver, McNichols, and Rhie to predict the chance of failing relative to the chance of NOT failing for firms?
How much of their original bonds did private investors have to exchange in the Greek government’s 2012 mandate?
True or false: With default risk unrelated to other economic events, the bond has a zero beta, and the discount rate matches the risk-free rate.
True or false: Designated as junk bonds are bonds carrying ratings below BBB (Baa).
True or false: Banks and life insurance companies usually enter investment-grade bonds on their books at their face value.
True or false: Junk bonds are bonds rated BBB (Baa) and above.
True or false: Credit default swaps provide a means for investors to insure corporate bonds.
True or false: Safeguarding a bond, a government guarantee mirrors the value of a put option on the firm’s assets.
True or false: The correlation between bond maturity and the value of a firm’s default right often exhibits a dynamic increase.