Interest Rate Risk of Corporate Bonds

Dec 06, 2006 · A corporate bond also is exposed to the interest rate risk. The important difference between government bonds and corporate bonds is the fact that a corporate has an extra source of risk: credit risk. ... (Aaa), AA (Aa), A or BBB (Baa) for S&P (Moody’s). High yield firms are less creditworthy (and therefore investing in high yield bonds means ... ................
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