### Short description on credit risk analysis of the bond

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Short Description on Credit risk analysis of the different bonds

Your task for this module is to apply the concept of present value to your chosen company. Suppose your company is selling a bond that will pay you \$1000 in one year from today. Keep in mind that if your company has financial difficulties in one year you might not get your full \$1000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full \$1000 for this bond. Given the concepts of the time value of money,

Pick two other companies in the same industry as your company. One should be one that you would pay less for a \$1000 bond than you would from your SLP company and another one that you would pay more for a \$1000 bond from your company. Explain why you would pay more or less for their bonds.

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