Bonds and Risk: When you consider how bonds are valued, what is the greatest risk in the use of bonds?

Does your company purchase the bonds of other companies as an investment?


What is the investment grade of the Company’s bonds?


Within their Notes to the Financial Statements can you identify any discussions on financial risk?


If the Company has issued Bonds look at terms and identify the interest rates they are paying.


Find a competitor to the company and look at their debt as well. Maybe compare the 2 through a Debt/Equity ratio. Who is managing their debt structure better?