03 11. Bond ratings Rating agencies such as Standard & Poor's CorporationSAP). Moody's Service, and itching to be both quantitative and qualitative factors. These ratings are considered indicators of the work, which made boden the issuer's cost of debt capital Based on these ratings, bonds are assified into investment grade bonds and junk beds which of the sky to budete na investment grade bond? A bond whose issuer has a 10% return onts, a total date to capitato of us, dat veld A bond whese issuer has a 20% return on assets a total debt to total capital of Indian wird You heard that rating agencies have downgraded a bond's eating, neved on the con le key to Vandre Assume you make the following investments AD - A $10,000 Investment in a 10-year T-bond that yields and A$20,000 investment in a 10-year corporate bond with an Ati indavid in the course You heard that rating agendes have downgraded a bond's rating. The yield on the bond is likely to and the bend's price Assume you make the following investments: - A $10,000 investment in a 10-year T-bond that yields 7.50 and A $20,000 investment in a 10-year corporate bond with an AA rating and a yield of 8.70% Based on this information, and the knowledge that the difference in liquidity risk premiuens between the two bonds is 0.00, what is your estimatut the corporate bond's default risk premium 0.84% 1.209 01.0296 0.00% Save & Continue