Grand canyon FIn350 week 5 discussions
Question # 00104499
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Updated on: 09/18/2015 08:02 AM Due on: 09/29/2015
There is an inverse relationship between interest rate changes and changes in the market price of outstanding bonds. Explain the logic behind this principle. Given this relationship, do you believe it is currently a good time to buy bonds? Why or why not?
Q-200 word
Agencies such as Moody’s, Fitch, and Standard and Poors rate the default risk of various municipal and corporate bonds. While their rating systems are proprietary, it is widely known that they rely on financial ratios as key inputs to their bond ratings. Which financial ratios (list at least 2) do you believe would be the most helpful to rate corporate bonds? Why?
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Solution: Grand canyon FIn350 week 5 discussions