Question: I need help answer questions attached for Finance course (610) FIN 610 Week 5 Conference _6-19-15 A. Bond Rating and Risk - There are three
I need help answer questions attached for Finance course (610)
FIN 610 Week 5 Conference _6-19-15 A. Bond Rating and Risk - There are three major rating agencies for debt securities of domestic firms: Standard and Poor's, Moody's and Fitch. Each of the rating services has web pages describing rating process Answer the following questions - 1. Describe the ratings process. According to 2. What are investment grade bonds? 3. Identify the key ratios that might go into assignment of ratings of bonds Major Rating Websites http://www.fitchratings.com Fitch https://ratings.standardandpoors.com/about/about-credit-ratings/ratings-process.html https://www.moodys.com/ B. Interest Rates - What are the differences to the borrowers between Fixed Mortgage Rate and Variable Mortgage Rate? C. Cost of Capital VS Demand - If the cost of capital is low and there is little demand for the product, would companies still expand their capital investment
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