Managerial Finance
Not what you're looking for?
Discussion Question 3:
Let discuss bonds, either corporate or municipal. Recently, several companies have had their bond rating lowered by the major rating agencies due to accounting irregularities. What impact does a bond rating have on a bonds value or Yield to Maturity? What are some factors that affect the value of a corporate or municipal bond? Why is it necessary to value a bond in terms of today's dollars? And what is the impact of an increase in the prevailing interest rate on the valuation of a bond?
Purchase this Solution
Solution Summary
This question involves the fundamentals of Managerial Finance
Solution Preview
Hi there,
<br>
<br>A bond rating has a significant impact on value. The purpose of these rating companies is to assess how financially sound the corporation or municipality is. An investor will want to know about the likelihood that they will not be repaid on their loan. The poorer the rating, the higher the level of risk. As a result, the investor will command a higher yield to compensate for that additional risk.
<br>
<br>Some factors include: the ability of the corporation or ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.