Altman study of bond mortality fund

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Reference no: EM131999364

1. Altman's study of bond mortality fund

(a) most defaults occur within 2 years of issuance.

(b) in general, the lower the rating at the time of issue, the higher the default rate.

(d) AA bonds are the best investment based on lack of defaults.

(e) junk bonds default at the same rate as investment grade bonds.

2. A bond's expected return should be related to its

(a) unique risk. (b) total company assets.\

(e) financial leverage.

Reference no: EM131999364

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