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1. What is the purpose of bond ratings? What types of risk associated with a bond investment are these ratings designed to measure? 2. A.

1. What is the purpose of bond ratings? What types of risk associated with a bond investment are these ratings designed to measure?
2. A. Define the variables included in the following model: i= (RFR, I, RP) B. Assume that the firm whose bonds you are considering is not expected to generate positive earnings this year. Discuss which factor in the model might be affected by this information.
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1. What is the purpose of bond ratings? What types of risk associated with a bond investment are these ratings designed to measure? 2. A. Define the variables included in the following model: i=(RFR,1,RP) B. Assume that the firm whose bonds you are considering is not expected to generate positive earnings this year. Discuss which factor in the model might be affected by this information

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