Nonquantitative factors best predict bond defaults

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Reference no: EM131308250

Bond rating agencies have invested significant sums 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. To recoup those costs, some bond rating agencies have tied their ratings to the purchase of additional services. Do you believe that is an acceptable practice? Defend your position.

Reference no: EM131308250

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