What factors determine a bond's rating? Why is the rating important to the firm's manager?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
Ratings involve a judgment about the future risk potential of the bond Althoug...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Foundations Of Finance
ISBN: 9780134083285
9th Edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
Question Posted:
Students also viewed these Finance questions
-
What factors determine a companys bond rating?
-
What factors determine a company's bond rating? MINI CASE Sam Struthers and Shawna Tibbs are vice-presidents of Mutual of Seattle Insurance Company and co-directors of the company's pension fund...
-
What factors determine a central bank's independence? What are the benefits of having an independent central bank?
-
All administrative laws are criminal laws and enforceable as such even though they are not part of the Criminal Code. True False
-
What is the rational expectations hypothesis, and how is it applied to tests of hypotheses about expected returns in financial markets?
-
Power Corporation acquired 75 percent of Best Companys ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Bests net...
-
1. To develop an understanding of your ethical leadership style 2. To understand how your preferred ethical leadership style relates to other ethical leadership styles Directions 1. Please read the...
-
Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide color prints rivaling those...
-
What should you do if you are on the coast and hear a tsunami siren?
-
1: Using variable elimination (by hand!), compute the probability that a student who did well on the test actually understood the material, that is, compute P(+u| + e). 2: For the above Bayesian...
-
a. How does a bond's par value differ from its market value? b. Explain the differences among a bond's coupon interest rate, current yield, and required rate of return.
-
Explain the relationship between the required rate of return and the value of a security.
-
What are the two general types of distribution channel that companies can choose from based on desired exposure?
-
Free Cash Flow Iron Ore Corp. reported free cash flows for 2008 of $102 million and investment in operating capital of $192 million. Iron Ore listed $42 million in depreciation expense and $48...
-
Starset, Inc., has a target debt-equity ratio of 0.77. Its WACC is 11 percent, and the tax rate is 32 percent. a. If the company's cost of equity is 16.5 percent, what is the pretax cost of debt? b....
-
Identify and explain the two ways in which post synaptic potentials are summed/integrated.
-
You have been managing a $5 million portfolio that has a beta of 0.90 and a required rate of return of 15%. The current risk-free rate is 7.25%. Assume that you receive another $500,000. If you...
-
A trust notifies Annie that she is entitled a grant that would give her annual payment of $5,000 in perpetuity. Different from Question 5, the first payment to Annie will be made in the end of year...
-
Which of the following statements can be used to code a loop whose instructions you want processed 10 times? a. For b. Repeat c. While d. Either a or c
-
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
-
Go-Power Batteries has developed a high-voltage nickel-metal hydride battery that can be used to power a hybrid automobile and it can sell the technology immediately to Toyota for $10 million....
-
You plan to borrow $20,000 from the bank to pay for inventories for a gift shop you have just opened. The bank offers to lend you the money at 10 percent annual interest for the six months the funds...
-
Determine the annualized cost of forgoing the trade credit discount on the following terms (assume a 360-day year): a. 1/10, net 20 b. 2/10, net 30 c. 3/10, net 30 d. 3/10, net 60 e. 3/10, net 90 f....
-
3. Draw the logic diagram of the SOP minimized circuit 4. Use De Morgan's theorems to express the simplest SOP in terms of NAND operators. 5. Use the Karnaugh map method to find the simplest...
-
1. Consider the modification of the master-slave latch pair given in Fig. 1. a) Under a regularly changing clock CK, specify the sequence y1, 92, 93, 94 of output signals appearing at Q at the end of...
-
3.99 Write ARM assembly code to implement the following C statements, assuming all variables are 32-bit integers and a declaration of x[10], y[10]: for i=0; i < 10; i++) x[i] = 10 -1; v[9 - i] = 1;
Study smarter with the SolutionInn App