How are corporate bond ratings determined? asks another client, and how and why do these ratings change

Question:

“How are corporate bond ratings determined?” asks another client, “and how and why do these ratings change once they are arrived at?” What should Jill say?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cases in Finance

ISBN: 978-1259330476

3rd edition

Authors: Jim DeMello

See More Books

Question Posted: Nov 19, 2018 10:24 AM

See More Questions

Q1. Yield is the cost to the issuing entity for borrowing and the return to the investor/creditor for lending the money. Yield is also referred to as the market rate and the effective rate of...
The chart shows the number of global corporate bond issues for which Standard & Poor's issued ratings upgrades or downgrades every year from 1981 to 2014. a. What is the trend in the number of...
Nationally Recognized Statistical Rating Organizations (NRSROs), or creditrating agencies, provide investors with independent assessments of a debt issuers ability to make scheduled interest and...
Pretty much any real object takes up space. This can cause confusion when asking, for instance, what is the r position of a car? Do we mean the front end of the car? The back end? Somewhere in...
State whether each of the following will increase, decrease, or have no effect on the population variance. (a) The sum of squares (SS) increases. (b) The sample size decreases. (c) The size of the...
Solve 8 +6x + 10 = 32 for x
An engineer is to design a channel lined with planed wood to carry water at a flowrate of $2 \mathrm{~m}^{3} / \mathrm{s}$ on a slope of $10 \mathrm{~m} / 800 \mathrm{~m}$. The channel cross...
The Tiny Treasures Company must decide whether to continue selling a line of childrens shoes manufactured on a machine that has no other purpose. The machine has a current book value of $12,000, and...
Sheridan Company purchases $46,000 of raw materials on account, and it incurs $55,200 of factory labor costs. Supporting records show that (a) the Assembly Department used $22,080 of direct materials...
A distortionless line operating at 120 MHz has R = 20 /m, L = 0.3H/m, and C = 63pF/m. (a) Determine , u, and Zo. (b) How far will a voltage wave travel before it is reduced to 20% of its initial...
During the presentation, one of the clients is confused about the fact that some of these bonds sell for less than their face value while others sell at a premium. She asks whether the cheaper bonds...
Why is there so much variation in the coupon rates and prices of these various bonds? asks one of Jills wealthiest clients. How should Jill respond?
A hybrid carbon-aramid/epoxy composite is made by randomly mixing continuous aligned fibers of the same diameter, so that there are two carbon fibers for each aramid fiber. The fibers are assumed to...
> For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and paper Payroll and employee benefits Occupancy and other expenses...
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $7,500 per month for the next three years, or you can...
Title: Services Marketing Case Study Questions- Moti Restaurant file:///C:/Users/Window/Downloads/Case_Study_9.pdf.pdf Questions: 1. Using the (8p's) of marketing as your guide. Explain each while...
How do you theorize the impact of government intervention and its influence on free market principles? Specifically, how does this balance affect national competitiveness and the attraction of...
How is the New Math movement of the 1950s and 1960s similar to the Reform Movement of today?
Exercise 4.40 on page 236 describes an ongoing game of Euchre, in which the game continues until one of the two teams is deemed to be statistically significantly better than the other team. Which...
For the vector whose polar components are (Vr = 1, VÎ¸ = 0), compute in polars all components of the second covariant derivative VÎ±;Î¼;Î½. To find...
In the current year, Tanager Corporation (a C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a...
Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of...
In the current year, Plum, Inc., a closely held C corporation, has $410,000 of net active income, $20,000 of portfolio income, and a $75,000 passive activity loss. What is Plums taxable income for...
BRAND SELF COLLATERAL What is your brand name? What is your logo (YOU MUST DESIGN IT What is your brand slogan (the phrase that defines your brand and yourself) What are celebrity spokesperson is...
Amidst the burgeoning complexity of contemporary business landscapes, how do advanced organizations employ sophisticated design principles and ergonomic considerations to optimize physical workspaces...
JavaScript Assignment 1: Personal Web site This assignment is linked to your final project. Thus far, you have completed a total of 4 sections as part of the Final Project. You have created a basic...

How are corporate bond ratings determined? asks another client, and how and why do these ratings change

Question:

Step by Step Answer:

The ratings are determined by professional rating agenci...View the full answer

Cases in Finance

Students also viewed these Business questions