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Consider the following information regarding corporate bonds: Rating Average Default Rate Recession Default Rate Average geta Market Company AAA 0.0% 0.0% 0.05 AA 0.0% 1.0%

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Consider the following information regarding corporate bonds:

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Rating Average Default Rate Recession Default Rate Average geta Market Company AAA 0.0% 0.0% 0.05 AA 0.0% 1.0% 0.05 A 0.05 BBB 0.10 2.1% 8.0% 0.17 5.2% 16.0% 0.26 ccc g.g% 43.0% 0.31 Total Enterprise Capitalisation (Smm) Value ($mm) Equity geta 1.1 Debt Rating Taggart $4,500 Transcontinental 8,000

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