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Elaborate on four variables which affect bond default risk according to Jane Howe.

Elaborate on four variables which affect bond default risk according to Jane Howe.

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Elaborate on default risk of a firm. That is, talk about the definition the ratings and...
Elaborate on default risk of a firm. That is, talk about the definition the ratings and the factors, which go into the ratings. How do ratings and yields to maturity relate? How does time and bankruptcy risk relate? How is default risk different from systematic risk?
Elaborate on default risk of a firm. That is, a) talk about the definition the ratings...
Elaborate on default risk of a firm. That is, a) talk about the definition the ratings and the factors which go into the ratings. b) How do ratings and yields to maturity relate? c) How does time and bankruptcy risk relate? d)How is default risk different from systematic risk?
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If asset A is a 10-year Treasury bond which has no default risk and is yielding 4% while asset B is a 15-year Treasury bond with no default risk also yielding 4%, investors would prefer asset A. prefer asset B. be indifferent between the two assets. require more information before choosing asset A or asset B.
1. Suppose Bond A has higher default risk than Bond B. Which bond should have the...
1. Suppose Bond A has higher default risk than Bond B. Which bond should have the higher interest rate? Why? 2. Currently a number of industries are facing higher risk of default on bonds due to underperformance from COVID-19. Suppose the government announces next day that it will guarantee all corporate bonds and pay the creditors if the companies fail to do so in the future. Explain the mechanism how the government guarantee will affect the default risks, demands, prices,...
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Does having a default free bond mean that WACC underestimates the company's risk?
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With respect to how it reduces perceived default risk, a “serial bond” is most similar to:...
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