If your broker wanted you to purchase a 6% bond when investments with similar risk were paying 8% how much would you be willing to pay for the bond? Why? Why do bonds sell for more or less than face value? Why is risk important in valuing bonds?

It is important to properly classify and report current and long-term liabilities because they affect liquidity and risk for a company. In your initial post address the following questions: If your broker wanted you to purchase a 6% bond when investments with similar risk were paying 8% how much would you be willing to pay for the bond? Why? Why do bonds sell for more or less than face value? Why is risk important in valuing bonds?

For your second reply post refer to the most current financial statements of the company you are analyzing and answer the following:

1. Is the total stockholders' equity more or less than total liabilities? What does the result mean?
2. Calculate the debt ratio for your company. Generally speaking what does the debt ratio tell you?