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Consider the following information regarding corporate bonds: Rating Average Default Rate Recession Default Rate Average Beta AAA 0.0% 0.0% 0.05 0.0% 1.0% 0.05 0.2% 3.0%
Consider the following information regarding corporate bonds:
Rating Average Default Rate Recession Default Rate Average Beta AAA 0.0% 0.0% 0.05 0.0% 1.0% 0.05 0.2% 3.0% 0.05 BBB 0.4% 3.0% 1.0 2.1% 8.0% 0.17 5.2% 16.0% 0.26 ccc 9.9% 43.0% 0.31
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