Question: Purpose: Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Fitch

Purpose: Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Fitch Ratings provides ratings for companies that issue debt securities.
Instructions
Answer the following questions.
(a) In what year did Fitch introduce its bond rating scale? (See History in About Us.)
(b) What letter values are assigned to debt investments that are considered “investment grade” and “speculative grade”? (See Ratings Definitions.)
(c) Search the web to identify two other major credit rating agencies.

Step by Step Solution

★★★★★

3.32 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a In 1924 the Fitch Publishing Company introduced the now familiar AAA to D r... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

48-B-A-L (424).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

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

Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Fitch Ratings provides ratings for companies that issue debt...

Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Also, bond prices change when the risks associated with those...

Purpose: 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...

Instructions Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Also, bond prices change when the risks associated...

Bond or debt securities pay a stated rate of interest. This rate of interest is dependent on the risk associated with the investment. Also, bond prices change when the risks associated with those...

Liquid kerosene (essentially dodecane) is burned in air at 25 8C and 50% relative humidity with an air-fuel ratio of 20. Calculate the adiabatic flame temperature.

Developing the event concept is the initial stage of planning an event. What are the key decision areas in this stage? Briefly explain each.

2. Manufacturing engineers produce a product concept.

2.24. (Sec. 2.4) Let (X,,Y,)',(X2, Y2)', (X3, Y3)' be independently distributed, (X, Y,)' according to Oxx Ozy i = 1,2,3. Oxy Oyy (a) Find the distribution of the six variables. (b) Find the...

1. When we calculate how much energy is needed to break a chemical bond, it makes a difference if we are talking about a single molecule in a vacuum, or lots of molecules contained in a fluid. The...

C,d Positive c,dyo and the function defined by s integtiabla XE I meed f(x) d X

Q. 2 Let Y ~ Bin(n, 7), when n = 40 and T = 0.2. (a) We observed the value of Y, y = 10. Calculate the 95 % of Wald, Score (Wilson's), Agresti-Coull confidence intervals for T. For this question,...

Assume that the price of an asset follows the Geometric Brownian process with an expected rate of return of 10% per annum and a volatility of 20% per annum. Suppose the asset price at present is...

Radzinsky Company applied FIFO to its inventory and got the following results for its ending inventory . Cameras 1 00 units at a cost per unit of $65 DVD players 150 units at a cost per unit of $75...

Jacob?s Hardware reported cost of goods sold as follows. Jacob?s made two errors: (1) 2011 ending inventory was overstated $3,000, and (2) 2012 ending inventory was understated $6,000. Instructions...

Pellegrino Watch Company reported the following income statement data for a 2-year period. Pellegrino uses a periodic inventory system. The inventories at January 1, 2011, and December 31, 2012, are...

On 1 March, Joe Conday started a new business. During March, he carried out the following transaction: 1 March deposited $20,000 in a newly opened bank account. 2 March bought fixtures and fittings...

: You are saving for your childs college education. Your child will start college in 16 years, and college tuition is due at the beginning of the year (i.e., the first tuition payment will occur at...

Question 6 191 Your friend Lilly wants to invest in an annuity for 5 years in order to have at least R100 000 at the end of the five-year investment. She needs at least R100 000 to invest in a rental...