In 2008 aig was at risk of declaring bankruptcy and, Ask an Expert

Economics

In 2008, AIG was at risk of declaring bankruptcy and defaulting on its debt. As a result, the U.S. government stepped in and provided funding for AIG, essentially insuring creditors that they would recieve their debt payments.

After the government intervention, what is the effect on interest rates for AIG Bonds?

As a reult of the government intervention how would this affect the risk premium on AIG debt?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9471404

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