Consider a firm that issued a large quantity of commercial paper in the period leading to a

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Consider a firm that issued a large quantity of commercial paper in the period leading to a financial crisis.
a. How would you expect the credit rating of the commercial paper to evolve as the crisis unfolds?
b. Would you alter your prediction if, rather than commercial paper, the firm was instead issuing asset-backed commercial paper?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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