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Q: What factors determine company's bond rating?
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How does corporate bond ratings work?

The leading rating agencies give a rating when a bond is first issued, and that rating determines how high the interest rate on that bond is. A higher rating means the bond will have a lower interest rate.


What impact does a companys bond rating have on its cost of capital?

short notes on : 1. cost of capital of a bond. 2. cost of capital of an equity share. 3. discounted pay backperiod. 4. modified internal rate of return. 5. mutual funds in india.


What is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date?

This is a bond. A bond is distinguished by 4 main factors. First, the interest rate of the bond. Secondly, the term of the bond. Thirdly, how the bond is repaid, whether it is all at once at maturation or if yearly installments of interest are paid (coupons). Lastly, the risk factor of the bond is used to sort bonds by credit rating companies from AAA rating (the highest) to junk bond rating.


What is the grade bond rating level UNR?

It stands for unrated. That rating agency does not rate that bond.


When was Dominion Bond Rating Service created?

Dominion Bond Rating Service was created in 1976.


What does the bond credit rating assess?

Bond credit rating is used to assess the credit worthiness of a corporation or government's debt issues. A bond credit rating is similar to a credit rating that an individual person receives.


What is a bond rating?

A bond issuer's probability of defaulting


What factors determine interest rates?

What is in the 401k account will determine what type of return you will get on it. How well the stocks, bond, mutual fund and other securities in the 401k is doing will determine the return in the 401k


How do bond rating influence which bond investors buy?

In simple terms, the better the rating the safer the investment.


What factors determine 401k interest rates?

What is in the 401k account will determine what type of return you will get on it. How well the stocks, bond, mutual fund and other securities in the 401k is doing will determine the return in the 401k


What do bond grades represent?

Various bond rating companies study a company's business. They look for earnings and business prospects. they also see if a company pays its debts on time and how much it already owes. Based on factors like these they assign a rating grade. They usually are a AAA. AA. or A, being the lowest.


Why would you check the rating of a bond?

There are two complimentary reasons to check a bond's rating. If you're a risk-averse investor, checking a bond's rating indicates the bond's risk of default. These guys look for "investment grade" bonds. If you're an aggressive investor, risk equals reward: the worse a bond is, the more it pays.