Used in assigning the issues bond rating

Assignment Help Business Economics
Reference no: EM131009615

Bond rating agencies have invested significant sums of money in an effort to determine which quanatative and nonquanatative factors best predict vately with corporate personnel to get nonpublic information that is used in assigning the issues bond rating. To recoup those cost, some bond rating agencies have tied their ratings to the purchase of additonal services. Do you beleieve that this is an acceptable practice? Defend your position .

Reference no: EM131009615

Questions Cloud

Manipulates market activities to achieve political goals : China applies state capitalism which manipulates market activities to achieve political goals. Describe the political and legal systems in China and their effect on MNEs (multinational enterprise) doing business in China.
What is the lowest probability of a correct guess : In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Shou..
What happens to the equilibrium price for pollution rights : Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves. What happens to the equilibrium price for the pollution rights?
What is the present value of the annuity : A 15-year annuity pays $2,200 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the an..
Used in assigning the issues bond rating : Bond rating agencies have invested significant sums of money in an effort to determine which quanatative and nonquanatative factors best predict vately with corporate personnel to get nonpublic information that is used in assigning the issues bond ra..
Describe the benefits-drawbacks of balance transfer cards : Chris Ricci has several credit cards, on which she is carrying a total current balance of $12,500. She is considering transferring this balance to a new card issued by a local bank. the bank adervtises that, for a @5 fee, she can transfer her balance..
Explain the derivation of a production possibility curve : Derive and explain the derivation of a production possibility curve. Show how it is possible to have actual GDP above "potential GDP." What is potential GDP?
Strong supporter of free trade : if you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered their also? dis..
What is the equipments annual depreciation cost : Consider a facility that has a 30-year life, a replacement cost of $2 million, and an interest rate of 5%. Calculate the annualization factor. Show your work/ calculations using the formula. To implement the project, a new equipment is purchased at $..

Reviews

Write a Review

Business Economics Questions & Answers

  Elasticity of demand for one of the firms in the market

Suppose the demand function for an industry is given by Q d T = 200 9PT Where Qd T is the quantity demanded that this market is facing, and PT = $15 is the market price. Suppose the elasticity of demand for one of the firms in the market is -6.14: th..

  How many months will it take to pay for the building?

A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 9% compounded monthly.

  Suggested that the best way to control medical costs

Some economists have suggested that the best way to control medical costs is to remove the profit incentive for health care providers, particularly hospitals.

  Difference between accounting profit-economic profit

Why do restaurants shut down at a certain hour of the day, say 10:00 p.m? Why do movie theatres still show movies that have just a handful of movie watchers? What is the difference between accounting profit, economic profit, and normal profit?

  Q1 need help with a paper on economist milton friedman in

q1. need help with a paper on economist milton friedman in discussing his economic theories and why he is important?

  Needs-tested spending and induced taxes

In a recession, needs-tested spending and induced taxes

  What would the market quantity and price be

If we had efficiency in the duopoly, what would the market quantity and price be? How does this compare to your answer?

  Which is the best definition of the short run

Which of the following is the best definition of the short run?

  What are influence of changes in policies

Illustrate what are influence of following changes in policies on private saving and national saving. New policy: Increase in government purchases by $100 and taxes by $80. (MPC=0.7) Estimate amount of changes.

  Un millennium development goals

Can the researcher say with a 0.05 level of significance that the proportion of children not completing primary school is more than 1%.

  What is meant by externalities and types of externalities

What is meant by externalities? What are different types of externalities? What are different types of externalities? What is the Coase theorem? How is it related to externalities?

  The price of tuition at for-profit institutions

According to our discussion in class, the price of tuition at for-profit institutions (such as the University of Phoenix) tend to be much higher than people expect. For-profit institutions produce much better outcomes than public institutions, so the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd