What does moody mean by credit risk

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A). In each of the following parts, an expression that shows the relationship among the listed terms:

I. The price of a coupon bond, the coupon payments, the tace value, and the yield to maturity.

II. The amount borrowed on a simple loan, the required loan payment, and the yield to maturity.

III. The price of a discount bond, the bond's face value, and the yield to maturity.

IV. The amount borrowed on a fixed-payment loan, the payments on the loan, and the yield to maturity.

V. Brietly explain why bonds that have the same maturities often do not have the same interest rates.

VI. How is a bond's rating related to the bond issuer's creditworthiness?

VII. How does the interest rate on an illiquid bond compare with the interest rate on a liquid bond? How does the interest rate on a bond with high intormation costs compare with the interest rate on a bond with low information costs

b) According to Moody's, "Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk."

I. What "obligations" is Moody's referring to?

IL What does Moody's mean by "credit risk"?

Reference no: EM132729392

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