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Busıness Fınance I
BUSINESS FINANCE I Dersi Valuation of Bonds and Stocks soru cevapları
BUSINESS FINANCE I Dersi Valuation of Bonds and Stocks soru detayı:
SORU:
How are the bonds rated according to Standart and Poors?
CEVAP: According to Standard & Poors, AAA rated bonds are the safest, have lowest default risk whereas those that are rated BB or lower are expected to have high default risk and considered as junk bond. Junk bonds are required to provide very high yield in order to attract investors to invest in these bonds.
According to Standard & Poors, AAA rated bonds are the safest, have lowest default risk whereas those that are rated BB or lower are expected to have high default risk and considered as junk bond. Junk bonds are required to provide very high yield in order to attract investors to invest in these bonds.