How a bond rating might affect a company financial choices


Discussion:

As a present for doing so well in your finance class, your uncle has offered you a choice: He will give you either a zero coupon long term bond or a short term bond that pays coupon payments. Which would you choose and why (think about risk)?

A company's bond ratings might in concept be similar to your own personal credit ratings. Use an example of how someone's personal credit rating might affect their financial life -- and then translate that to how a bond rating might affect a company's financial choices.

Requirements:

Your discussion response should be approximately 200 words. APA format for all references is expected - at the very least, your textbook should be listed as a reference for your discussion posting.

 

 

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Financial Management: How a bond rating might affect a company financial choices
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