--%>
Assignment Help - homework help

Bond Ratings

Fully explain the term Bond Ratings?

E

Expert

Verified

Bond Ratings:

• Individuals and small business encompass to rely on exterior agencies to give them information on default potential of bonds.

• The two most famous credit rating agencies are Moody’s Investors Service (Moody’s) and standard and poor’s (S&P). Both credit rating services rank bonds in precedence of their predicted probability of default and publish the ratings as letter grades.

• The maximum-grade bonds, those with the minimum default risk, are rated Aaa (or AAA).

• Bonds in the top four rating groups are termed as investment-grade bonds—AAA to Baa.

• State and federal laws usually need commercial banks, pension funds, insurance companies, other financial institutions, and govt. agencies to buy securities rated merely as investment grade.

   Related Questions in Microeconomics

  • Q : Determine probable price taker Of the

    Of the given firms, the probably to be a price taker would be: (1) Microsoft. (2) Wal-Mart. (3) Toyota. (4) the Los Angeles Lakers. (5) the biggest wheat farm in Canada. I need a good answer on the topic of

  • Q : Problem on demand for sport utility

    Can someone help me in finding out the right answer from the given options that the demand for sport utility vehicles is most probable to decline in response to main rises in: (1) Consumer’s income. (2) The number of consumers. (3) Relative prices for pickups an

    		•
  • Q : Ownership shares in corporation I have

    I have a problem in economics on Ownership shares in corporation. Please help me in the following question. The Ownership shares in a corporation are termed as: (1) Bonds. (2) Entrepreneurial capital. (3) Common stock. (4) Total worth. (5) Retained equity.

  • Q : Kinked Demand by increasing price In

    In this kinked demand curve model as in demonstrated, when this firm operates at point a and increases its price from P2 to P3 and its rival firms respond by increasing their prices, in that case this firm will move from point a

    		•
  • Q : Short run for production I have a

    I have a problem in economics on Short run for production. Please help me in the following question. In short run for production: (1) Both variable and fixed costs exist. (2) Productive capacity might be adjusted. (3) Unprofitable firms shut down. (4) No fresh workers

    		•
  • Q : Present consumption and future

    When interest rate increases, the cost of future consumption decreases?

    		•
  • Q : Operate market by economies of scale

    When a firm experiences economies of scale which span the bulk of demand in the market, in that case the market which this operates within will tend to: (i) evolve into a monopoly. (ii) become inefficient before this gets extremely large. (iii) seldom

    		•
  • Q : Decision processes in Microeconomics

    Decision processes within households, and government and firms and the consequences of such decisions are initially the focus of: (1) positive economics. (2) public choice economics. (3) microeconomics. (4) normative economics. (5) microeconomics.

    		•
  • Q : Single monopoly in market A monopoly is

    A monopoly is a single: (w) seller of differentiated products. (x) producer of a good for that there are no close substitutes. (y) producer of a good for that there are several substitutes. (z) buyer of products into the market.

    Q : Define change in demand Change in

    Change in demand: When change in demand takes place due to change in factor other than price, it is termed as change in demand.

    		•