4.what is credit risk? what is the main purpose of performing a credit analysis?

5. Why do lenders impoae debt covenants on borrowers? explain the three types of debt covenants

6. explain in general terms, the altman bankruptcy prediction model. What do each of the five model variable measure?

7. with respect to bankruptcy predection, what is a type 1 error? a type II error? if you are a creditor , which type of error is most costly to you? why?