Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on

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Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Moody’s Investment Service provides ratings for companies that issue debt securities.

Instructions

(a) What year did Moody’s introduce the first bond rating? (See Moody’s History.)

(b) What is the total amount of debt securities that Moody’s analysts “track”? (See An Introduction.)

(c) What characteristics must debt ratings have in order to be useful to the capital markets? (See Understand Risk: The Truth About Credit Ratings.)

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

Question Posted: Sep 13, 2011 08:41 AM

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Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on

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a In 1909 Moodys introduced the first bond ratings as part of ...View the full answer

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