(2) On October 16, 2013, Congress passed a bill to reopen the government through January 15, 2014 and raise debt ceiling until February 7, 2014 to avert default of the government and avoid a downgrade of the government credit rating. Why is it important to avoid the downgrade of credit rating? Explain.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.1. Bonds have different maturities and as the maturity of the bond increases, there is an increase in the maturity risk premium associated with the bond. Long term bonds offer higher returns to the investors so that they are comfortable in investing their funds in one security for a long time. Longer time period leads to higher levels of uncertainty as it is not possible...
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