Bonds are a vital source of financing to corporations and governments. Bonds are rated based on their default risk. Some bonds, such as Treasury bonds, have no risk of default, whereas so-called junk bonds have substantial default risk. Bond yields reflect the effect of six different things: the real rate and five premiums that investors demand as compensation for inflation, interest rate risk, default risk, taxability, and lack of liquidity.

Review the FINRA website (link below) and select the Bonds option

https://finra-markets.morningstar.com/BondCenter/Default.jsp(opens in new window).

Respond to the following questions in the discussion forum:

1. Select the Search option and make a "quick search" for a company of your choice. What are two bond prices and yields for bonds issued by your selected company..
2. What is the shortest-maturity bond issued by the company that is outstanding? What is the longest-maturity bond?
3. What is the credit rating for the company's bonds? Do all of the bonds have the same credit rating? Why do you think this is?