Determinants of bond ratings include the following:     Qualitative factors like the company's relationship with its labor force and potential regulatory changes.     Financial Ratios     The contract terms of the bond.     All of the above.     None of the above.

Q: answer both and explain why

A: Question 1:False.Generally, debt is considered a cheaper source of funding than equity. Here's…

Q: Which of the following is the worst measure of the cost of debt? Estimating Interest Rate based on…

A: The cost of debt is the effective return that a company pays for its debt to its debtholders. It is…

Q: differences in bond interest rates reflect differences in default risk True or False . Expl

A: Each bond have different rate of return depending on nature of bond and period of bond and maturity…

Q: Is it possible for a given company to haveseveral different bonds outstanding that have different…

A: Answer: Whether it is possible for company to have different outstanding bonds which have different…

Q: Give typing answer with explanation and conclusion  Which of the following does not carry out bond…

A: Bonds are a type of security investment. It is made for a fixed period and at a fixed rate of…

Q: Compare and contrast the difference between Bond Ratings and Bond Rating Agencies and the Bond…

A: 1 . Bond Ratings:Bond ratings are a means of expressing an issuer's creditworthiness or probability…

Q: Companies pay rating agencies to rate their bonds, and the costs can be substantial. However,…

A: As you have asked multiple questions, we will solve the first question as per policy. Request you to…

Q: Why would a company wish to reduce its bond indebtedness before its bonds reach maturity? Indicate…

A:

Q: You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and…

A: Bonds are financial instruments that represent a loan made by an investor to a borrower, typically a…

Q: Who rates bonds, andwhat are some of the factors the rating agenciesconsider?

A: Introduction: Bond rating is nothing but the grading of bonds based on their investment qualities.…

Q: Which is not considered in bond valuation? a. The required rate of return of the investors which…

A: Bonds are issued to raise finance for various purposes. The borrower pays the bondholder interest…

Q: If the going concern assumption is not made in accounting, discuss the differences in the amounts…

A: The company prepares its financial report based on generally accepted accounting principles. The…

Q: Rating agencies—such as Standard & Poor’s (S&P) and Moody’s Investor Service—assign credit ratings…

A: Investment-grade bonds-Such bonds are issued by low risk to medium risk lenders and pay low…

Q: With bond valuation, there are many terms to understand specific to bonds.   Take one of these terms…

A: Bond valuation is the process of determining the fair value or market price of a bond. Bond…

Q: Which of the following factors are included in the rating analysis of a corporate​ bond? I. the​…

A: The rating analysis of a corporate bond typically involves evaluating multiple factors related to…

Q: What is the market value of İdil Gıda's bond with a nominal value of 15000 USD, maturity of 3 years…

A: Since you have asked multiple questions, we will solve one question for you (I will solve the 2nd…

Q: In which market environment does the issuance of a callable bond make more sense from a corporate…

A: A bond is a debt security that is sold by a business entity to borrow long-term funds. Generally,…

Q: Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate…

A: The T-bill is the debt instrument used by the government to raise capital. It has a maturity of one…

Q: What are potential problems or limitations of using methods, to estimate the cost of debt, that rely…

A: Bond Ratings are the metrices used to determine the bond's quality and riskiness. It is the rating…

Q: What ratios are likely to be of greatest interest to the banker or trade creditor? To the…

A: The objective of the question is to identify the financial ratios that are of greatest interest to a…

Q: bond issuance costs are incurred

A: First option is wrong because one among the options is correct. Second option is wrong because…

Q: Should financial institutions invest in junk bonds?

A: The answer for the theory question on junk bonds is discussed hereunder.  Dear student,  As you have…

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: Discuss the effect if a company’s bond is downgraded.

A: Downgraded Bond: Credit rating agency are downgrading rating ofthe company's bond when their is risk…

Q: What is the main reason for the yield differences between treasury bond yield and corporate bond…

A: A treasury bond is issued by the government and is backed by the treasury whereas a corporate bond…

Q: Do bond ratings adjust immediately to changes in credit quality? Explain.

A: Bond ratings are the ratings given by the rating agencies on the credit quality of debt instruments…

Q: 15. Which is not considered in bond valuation? a. The required rate of return of the investors which…

A: Please Refer to Step-2 for answer.

Q: initial measurement of a bond on its issuance

A: First option is wrong because initial measurement of bonds can be done by market quotation to fix…

Q: Which of the following about bonds is false? OA Higher bond rating indicates higher probability of…

A: A bond is a debt instrument used by companies to raise capital from their investors. The investor…

Q: Explain the differences between a bond's yield to maturity (YTM) and its yield to call (YTC). Is…

A: Introduction: The following are the distinctions between the yield to maturity and the profit to…

Q: Ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs)   are unrelated…

A: NRSROs are the credit rating agencies which issue ratings permitted by Securities and Exchange…

Q: Bonds that are rated less than investment grade by bond-rating agencies is: a. Sovereign bonds b.…

A: Bond is the fixed income securities which promises the holder future coupon payments.

Q: What is a bond spread and how is it related tothe default risk premium? How are bond ratingsrelated…

A: Bond spread: It is the difference between the yields of two bonds.

Q: Which of the following are all traditional credit risk enhancement techniques? Group of answer…

A: credit risk mitigation technique is institutional collatoral agreement used to reduced credit risk.

Q: A bond backed by the future potential earnings and credit rating of the company is called a Group of…

A: A) Debenture bond is a type of bond which is unsecured by collateral. B) Serial bond is a type of…

Q: Which of the following statement is false about premium on bonds payable?   It decreases the…

A: Premium on bonds payable is the amount in excess of face value of the bonds payable. In simple, when…

Q: greatest

A: Introduction: Bonds are financial instruments of indebtedness by the holder of the bond to the…

Q: 38. Bonds issued by corporations and exposed to default risk are classified as A. corporation bonds…

A: A bond is a debt security that represents a loan given by an investor to a borrower, typically a…

Q: What are the different factors that affect the interest rates set by issuers of debt securities?

A: Debt securities seem to be financial assets which guarantee their holders interest payments in the…

Q: A scholarship foundation is committed to make a payment of 20,000 exactly two years from today. It…

A: To calculate the face value of the one-year zero-coupon bond required to fully immunize the…

Q: Decide whether the statement is true or false:   Both bond holders and common shareholders are…

A: Financial risk is the risk that involves financial losses to firms. There are several reasons for…

Q: Which of the following is a disadvantage to a corporation issuing bonds? Group of answer choices…

A: Disadvantages of issuing a bonds; (1) Since bonds are an increase in debt, they might adversely…