single quotes don't get removed in "${ASDF:-$'\n'alternat text}"

[l . g . e]

Configuration Information [Automatically generated, do not change]:
Machine: i586
OS: linux
Compiler: gcc -I/usr/src/packages/BUILD/bash-2.05b
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i586' 
-DCONF_OSTYPE='linux' -DCONF_MACHTYPE='i586-suse-linux' -DCONF_VENDOR='suse' 
-DSHELL -DHAVE_CONFIG_H  -I.  -I. -I./include -I./lib  -O2 -march=i586 
-mcpu=i686 -fmessage-length=0 -D_GNU_SOURCE -Wall -pipe -g
uname output: Linux minna 2.4.19-4GB #1 Thu Dec 19 23:53:43 CET 2002 i686 
unknown
Machine Type: i586-suse-linux

Bash Version: 2.05b
Patch Level: 0
Release Status: release

Description:
        single quotes don't get removed in "${ASDF:-$'\n'alternat text}"

Repeat-By:
        A=''
        echo ${A:-xxx$'\n'xxx some text}
        echo "${A:-xxx$'\n'xxx some text}"
        gives:
        xxx
        xxx some text
        xxx'
        'xxx some text