Hmm, I'm not entirely sure about this one. The question is asking about the effects, but I'm not sure which option best describes that. I'll have to think it through carefully.
I'm a bit confused about the part where it says "if the case can't be found, move to the next one." Does that mean we can just skip over cases that aren't in the system? I want to make sure I'm not missing anything important.
This is a tricky one. I know rating agencies don't just assume all bonds will be repaid, but I'm not sure if they always assume 100% loss in the event of default. I'll have to review my notes on this topic before answering.
Mary
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