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1) High risk should produce high returns. Illustrate this concept with a real life example of junk bonds that actually generated high returns for investors.

1) High risk should produce high returns. Illustrate this concept with a real life example of junk bonds that actually generated high returns for investors.

2) What happens with the stock price of a company whose debt rating is downgraded? Please refer to a specific example in the last three years. Did the company recover? Was it able to actually service the debt? What happened with its stock price?

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