What is a high yield bond? Name two companies who might be in this category. How does the bond rating affect an investor's required rate of return? What actions could a firm take to receive a more favorable rating? How COVID-19 might impact Corporate Bond Ratings?
What is a high yield bond? Name two companies who might be in this category. How does the bond rating affect an investor's required rate of return? What actions could a firm take to receive a more favorable rating? How COVID-19 might impact Corporate Bond Ratings?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Step 1: Introduce the concept of a Corporate Bond Ratings.
VIEWStep 2: Explain what is a high-yield bond and name two companies with high yield bond.
VIEWStep 3: Explain how does bond rating affects an investor's required rate of return.
VIEWStep 4: Determine what actions firm can take to receive a more favorable rating.
VIEWStep 5: Determine how COVID-19 might impact Corporate Bond Ratings.
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