1. What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the prices of bonds?

2. What are some factors to consider in evaluating a company's ability to make payments on outstanding debt? Please explain the factors rather than just providing a list.

DB POSTING REMINDERS:

• Please remember the initial post should be written as early in the week as possible, and the peer responses are due by Saturday evening.
• When you make your initial post, please fully answer the question and make substantive responses - i.e. at least 400 words that really dive into the topic and show that you've read the text and done research to support your opinions.