Question
What are the three bond rating agencies? Provide a brief description of each? What is the difference between an investment grade bond and high yield
What are the three bond rating agencies? Provide a brief description of each?
What is the difference between an investment grade bond and high yield or junk bond?
What grades of bonds are considered investment grade for each rating agency? What grades of bonds are considered high-yield or junk bonds for each rating agency? In your response be sure to discuss default risk and the relationship between default risk and investment grade?
What makes a junk bond a junk bond? Would you expect to earn a higher or lower return on a junk bond compared to an investment grade bond, and why?
Explain which of the bond components (par value, price, coupon rate, or maturity) indicated the level of default risk associated with the bond.
What investment grade did Dominos receive for this bond offering? How is this grade better for Dominos than if it had received a junk rating?
How does Dominos backing of its bonds with revenue streams decrease the riskiness of the bonds?
In a deal that involves whole-business securitization, the article states that the issuing firm is taking on a debt structure that can limit flexibility, potentially shortening their lifeline if the business takes a turn for the worse, explain how this statement is true in your own words.
What is the only company to default on a whole-business securitization S&P Global history?
If you had the opportunity, would you puchase Domino's bonds; why or why not
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