Why do the different types of bonds get different rates


Finance Assignment

Length: 800-1000 words.

Understanding how to properly value a vanilla bond (a plain bond) is essential for finance. Using the following Web site, find 3 different funding structures. Describe for each structure: security type, term, and yield. Furthermore, take a look at each of their offering documents, and provide a short description of the information found in the documentation.

Why do the different types of bonds get different rates? Explain your answer.

What makes each of the different structures different? Explain your answer.

What does the rate given say about the credit rating for each issuer? Explain your answer.

How does credit rating affect the rate given to the issuer? Explain your answer.

Which structure has the best credit rating based on the yield given to each structure? Explain your answer.

What is the credit rating supposed to tell you? Explain your answer.

Which bond is receiving the best price? Explain your answer.

Why does having a good credit rating matter to the issuer? Explain your answer.

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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