Why are bond ratings important both to firms and to investors? Do bond ratings adjust immediately to changes in credit quality? Explain.

Differentiate between mortgage bonds and debentures.

Name the major rating agencies, and list some factors that affect bond ratings.

Why are bond ratings important both to firms and to investors?

Do bond ratings adjust immediately to changes in credit quality? Explain.

Differentiate between Chapter 7 liquidations and Chapter 11 reorganizations. When should each be used