Do you believe that this is an acceptable practice

Assignment Help Finance Basics
Reference no: EM131131026

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond rating. In order to recoup those costs, some bond rating agencies have tied their ratings to the purchase of additional services. Do you believe that this is an acceptable practice? Defend your position.

Reference no: EM131131026

Questions Cloud

Calculate the probability that the first event : (a) Suppose that we round off the time by taking the integer part. Calculate the probability that the first event from to will be a birth.
What would be the benefit of your policies : How would your policy have affected interest rates and real output during the period in question? What would be the benefit of your policies?
An exponential distribution with parameter : The lifetime of a certain machine is a random variable having an exponential distribution with parameter λ. When the machine breaks down, there is a probability equal to p (respectively, 1 - p) that the failure is of type I (resp., II).
Write a short plot of the film : Write a short plot of the film, Write what the most remarkable part of the film--and use a specific scene to explain (remember, "remarkable" does not have to be good or the best--just something that stands out.)
Do you believe that this is an acceptable practice : In order to recoup those costs, some bond rating agencies have tied their ratings to the purchase of additional services. Do you believe that this is an acceptable practice? Defend your position.
Summarize notable theories and previous research on topic : Summarize notable theories and previous research on this topic, including at least three peer-reviewed studies. Discuss societal views of your topic and whether they have changed over time.
Write journal on amadeus film : Need a 300 word journal on Amadeus film. need you to talk about the lighting, setting, visual effect, sound effect, cinematographer whatever related to the film
Who is the protagonist of the play : In Shakespeare's "Merchant of Venice" it is a difficult play in many ways, and one of those ways is the simple question: who is the protagonist of the play? Write 200 words and make your claim about which figure is this main, focal character, and ..
The process wide-sense stationary : Suppose that {X{t),t ≥ 0} is a Wiener process with drift coefficient M and diffusion coefficient σ2 = 1, where M is a random variable having a uniform distribution on the interval [0,1].

Reviews

Write a Review

Finance Basics Questions & Answers

  Assume an annual coupon but 20 years remaining to maturity

barkley corportation has a bond issue outstanding with an annual coupon rate of 7 and years remaining until maturity.

  What is the probability that in the next sample

At any given moment, the pipeline managers estimate that 1.5% of the seams will need repair. What is the probability that in the next sample of 25 seams, 2 or fewer of the seams will need repair?

  Strategic decision makers are required to be able to

strategic decision makers are required to be able to evaluate projects based on the long-term objectives of the firm as

  Calculating the roe-roa the profit margin

Go to the investor relations portion of each corporation's homepage and find their most recent annual report. Complete a DuPont analysis by calculating the ROE, ROA, the profit margin, total asset turnover, and equity multiplier.

  Barcain credit corp wants to earn an effective annual

barcain credit corp. wants to earn an effective annual return on its consumer loans of 14.1 percent per year. the bank

  How much is collected from accounts receivable in november

Wiggles Right forecasted sales of $5,000 in October, $4,000 in November and $4,000 in December. All sales are on credit. 40% is collected the month of sale and the remainder the following month. How much is collected from accounts receivable in No..

  Ccc corp has a beta of 15 and is currently in equilibrium

ccc corp has a beta of 1.5 and is currently in equilibrium. the required rate of return on the stock is 12.00 versus a

  What is the payoff for a call option with a strike price

what is the payoff for a call option with a strike price of 50 if the stock price at expiration is 40? what if the

  Characteristics of fixed income and common stock securities

Create a matrix in which you describe characteristics of fixed income and common stock securities.

  How is the marginal cost of the various component capital

how is the marginal cost of the various component capital sources

  What is the difference between venture capital and initial

what is the difference between venture capital and initial public offering ipo? how would the group of interested

  Assume the risk-free rate is 6 percent and the market risk

assume the risk-free rate is 6 percent and the market risk premium is 6 percent. the stock of pcn has a beta of 1.5.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd