6. Firms such as Moodys and Standard & Poors study corporations that issue bonds. They publish ratings

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6. Firms such as Moody’s and Standard & Poor’s study corporations that issue bonds. They publish “ratings” for the bonds—evaluations of the likelihood of default. Suppose these rating companies went out of business. What effect would this have on the bond market? What effect would it have on banks? LOP8

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Macroeconomics And The Financial System

ISBN: 9781429253673

1st Edition

Authors: N. Gregory Mankiw, Laurence Ball

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