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You are analyzing the fixed-rate bonds of a large corporation. The bonds mature in 2048 and are rated AAA by S&P and Aaa by Moody's.
You are analyzing the fixed-rate bonds of a large corporation. The bonds mature in 2048 and are rated AAA by S&P and Aaa by Moody's. Without further analysis, you know that all of the following are true except:
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The bonds carry very little credit risk.
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The bonds would be unlikely to lose market value if interest rates increase significantly.
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The likelihood of default is remote.
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An investor is likely to recoup full par value at maturity
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