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2014 Chevrolet Impala Rockets to Top of Ratings in <em>Consumer Reports</em> Test
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2014 Chevrolet Impala Rockets to Top of Ratings in Consumer Reports Test
The redesigned 2014 Chevrolet Impala is the first domestic car to top Consumer Reports large sedan ratings in 20 years.
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Impala (Epsilon II platform developed by Opel), Chrysler 300 (LX platform evolution by Fiat of old W211 Mercedes platform), Ford Escape (Ford's Global C platform) and Fusion (European Mondeo platform), and Jeep Grand Cherokee (WK2 Mercedes platform).
Bonds -- even government bonds -- aren't risk free investments. The value of a bond is the perceived likelihood of the issuer being able to pay the interest until maturity and then redeem the bond. Bonds are rated accordingly -- and the risk is reflected in the interest rate and the value of the bond. GM bonds had been rated as junk for many years before bankruptcy.
However, the biggest misconception -- or deliberate omission -- is that bonds trade just like stocks too. You can buy bonds that were issued five or ten years ago.
The bondholders at the time of GM's bankruptcy may not be the bondholders who originally purchased the bonds -- or even the ones who lost money.
In a bankruptcy, bondholders exchange their old debt for new debt, equity, or both. This happened at GM too. Most bondholders readily took the new deal -- the liquidation value of GM was peanuts.
There was a small group who lobbied for the government to redeem the bonds at face value -- regardless of the price that they were purchased at. At the darkest hours, there were still people buying GM stocks and bonds, pressuring the government to "make things right". They would have made a killing at taxpayer's expense. The government was smart enough not to do it, but it seems like a lot of commentors have fallen for this hook, line and sinker.