Discussion Post: Returns and Bond Ratings
Instructions
Answer the following questions in a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both.
This course requires the use of Strayer Writing Standards. For assistance and information, refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
Respond to the following:
• You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest. What is the present value of the payments you will receive?
• In your own words and using various bond websites, locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.