Corporations have come to dominate the business world through their ability to raise large amounts of capital by sale of ownership shares to anonymous outside investors

Which of the following is NOT a valid conceptual or application problem of the mortality rate approach to estimate default risk?

A. Implied future probabilities are sensitive to the period over which MMRs are calculated. B. The estimates are sensitive to the number of issues in each investment grade. C. Syndicated loans seem to have higher mortality rates than corporate bonds. D. The estimated probability values are historic or backward-looking measures. E. The estimates are sensitive to the relative size of issues in each investment grade.

As you explain and justify your request, you should try to point out how complying with the request could benefit the reader

Indicate whether the statement is true or false.