Solution-Explain the conflict of interest

Explain the conflict of interest

Reference no: EM133114080

a). Companies pay rating agencies to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. So, why do they do it?

b). Do bond ratings agencies have any conflict of interest when they rate bonds? Clearly explain your answer.

Reference no: EM133114080

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Explain the conflict of interest

Reference no: EM133114080

Reference no: EM133114080

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