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Bond-rating agencies have invested significant sums of money in an effort to determine which quantitative and non-quantitative factors best predict bond defaults. Furthermore, some of

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

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