Week 4: Discussion Board

1. How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too? What else might affect the interest rate on a bond?

2. What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the prices of bonds?

3. What are some factors to consider in evaluating a company's ability to make payments on outstanding debt? Please explain the factors rather than just providing a list.

Response to first two questions due by Wed at 11:59pm ET

Response to third question and replies due by Sat at 11:59pm ET

DB POSTING REMINDERS:

• Please remember the initial post should be written as early in the week as possible, and the peer responses are due by Saturday evening.
• When you make your initial post, please fully answer the question and make substantive responses - i.e. at least 600 words that really dive into the topic and show that you've read the text and done research to support your opinions.
• Apply appropriate examples that illustrate your points - feel free to bring your workplace experiences into the discussion. It helps us all learn when we can relate our past workplace experiences to what we're learning here in the discussions.
• You must reply substantively (at least 50 words that welcomes further discussion) at least three times to your classmates and/or your instructor.
• You may not use any quoted material even if sources are cited. Please make sure all posts are written entirely in your own words.