Altman's Study of Bond Mortality Found

question 25

Multiple Choice

Altman's study of bond mortality found

• A) most defaults occur within 2 years of issuance.
• B) in general, the lower the rating at the time of issue, the higher the default rate.
• C) that no AAA rated bonds have defaulted.
• D) AA bonds are the best investment based on lack of defaults.

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Definitions:

Limited Liability Company

A business structure that combines the liability protection of a corporation with the tax benefits of a partnership.

Tax Advantages

Tax advantages are financial benefits that reduce the amount of tax owed by individuals or businesses, often through deductions, exemptions, or credits.

Liability Advantages

pertains to the benefits or favorable conditions arising from the structuring of legal entities or arrangements to minimize legal responsibility or financial risk.

Limited Liability Company

A company setup that integrates the sole proprietorship or partnership's pass-through tax feature with a corporation's limited liability protection.