Problem: Using the following website:
https://www.bondsonline.com/Todays_Market/Corporate_Bond_Spreads.php
Put together a table of interest rates for a company with a AAA rating, BB rating and a junk rating.
Q1. Discuss which interest rates should be used for an asset which is 1 year in length, 5 years in length, 15 years in length and 30 years in length.
Q2. Discuss how the interest rate will be impacted if the bond is a government bond or a corporate bond.
Q3. What typically happens to the interest rate as the amount of time increases, i.e. the maturity increases? Explain your answer.
Q4. Why are the interest rates different for different credit ratings? Explain your answer.