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Downgrade risk

Which bond has a highest downgrade risk a AA bond or a BB bond and why?

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You can't answer that question unless perhaps if you're provided with a ratings transition matrix.

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@CFAbooked, yeah that makes more sense. I think that was what I was looking for. Thank You.



Edited 1 time(s). Last edit at Wednesday, November 24, 2010 at 09:53AM by JCM.

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