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Thread: G Fund Going Up?

  1. #25

    Default Re: G Fund Going Up?

    Question: If the Gov't defaults on the National Debt, and our rating goes to AA instead of AAA, does the yield of the G fund increase?
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  3. #26

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    Default Re: G Fund Going Up?

    Quote Originally Posted by SkyPilot View Post
    Question: If the Gov't defaults on the National Debt, and our rating goes to AA instead of AAA, does the yield of the G fund increase?
    If the nation defaults, they don't pay at all, now do they?

    If they were to ever default, the rating won't go from AAA to AA. If they default, then the S&P rating goes to "D".

    See: http://en.wikipedia.org/wiki/Bond_credit_rating for bond rating information.

    And no, the government will intervien to try and keep the rate as low as possible, as they don't want to have to pay back anything more than they have to.

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