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 bonds change. Find the ratings for any chosen company that issues debt securities and then answer the following questions. a. Explain the rating and the meaning of the rating. b. Justify the rating. What types of things can cause a change in the company's credit rating? c. Explain the relationship between the company's credit rating and the merit of an investment in that company's bonds

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 bonds change. Find the ratings for any chosen company that issues debt securities and then answer the following questions. a. Explain the rating and the meaning of the rating. b. Justify the rating. What types of things can cause a change in the company's credit rating? c. Explain the relationship between the company's credit rating and the merit of an investment in that company's bonds

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 95.1C

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