Quantitative factors best predict bond defaults

Assignment Help Financial Management

Reference no: EM131010999

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and non quantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond rating. To recoup those costs, some bond rating agencies have tied their ratings to the purchase of additional services. Research using the Internet articles related to this topic.

o you believe this is an acceptable practice? Defend your position

Reference no: EM131010999

Questions Cloud

Identify and handle errors-bottlenecks and reiterations : Identify and handle errors, bottlenecks, and reiterations. Must precisely define how much variation from standards can be allowed in execution

Maintain constant growt rate-how much will you pay for stock : Alexander Corp. will pay a dividend of $3.10 next year. The company has stated that it will maintain a constant growth rate of 4.75 percent a year forever. If you want a return of 16 percent, how much will you pay for the stock?

Briefly describe wilkinson law of the learner : Briefly describe Wilkinson's law of the learner, then explain in more detail how this law affects the way you prepare and present your Bible lesson

What is probability that three or four customers will arrive : Assume that the number of customers who arrive at a water ice stand follows the Poisson distribution with an average rate of 6.4 per 30 minutes. What is the probability that three or four customers will arrive during the next 30 minutes?

Quantitative factors best predict bond defaults : Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and non quantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate ..

Identify the logistic function as increasing or decreasing : Identify the logistic function as increasing or decreasing. Use limit notation to express the end behavior of the function. Write equations for the two horizontal asymptotes.

What the weighted average cost of capital for a firm is : The calculation of after-tax cost of debt plays a role in managing capital costs. You have been asked to present a few matters related to Debt (Bond) financing to the Board of Directors.

Segments of the accounting function : In chart form, distinguish between these 3 segments of the accounting function, each of them along these 4 criteria: The legal or regulatory bodies and guidelines that must be abided by.

Cease paying dividends forever : Bui Corp. pays a constant $14.50 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever. Required: If the required return on this stock is 10 percent, what is the current s..

User Account

All Pages