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There Are Different Recovery Conventions >> RT)
C)Which One Is Greater Depends on the Level of of Market

Question 11

Multiple Choice

There are different recovery conventions.Two common ones are RMV (recovery of market value) and RT (recovery of Treasury value) .For a given dollar value recovered on a default bond,it is generally the case that


A) RMV <
RT)
B) RMV >>
RT)
C) Which one is greater depends on the level of interest rates.
D) None of the above.

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