Analyzing the Business of Corporate and Quasi Government Bond

Assignment 1
Student's Full Name
Institutional Affiliation
Course Full Tittle
Due Date
Chapter 1
Corporate bond (Junk bond)
a) The Investors in Junk bond
Junk bond gets its investments from companies undergoing issues in paying principal to its investors. Companies that are on the verge of bankruptcy rely on junk bonds to pay back investments to their clients from huge earnings generated.
b) Junk bond Indenture
An example of indenture in junk bond is the low interest paid. Investors pay relatively low interest, but the junk bond company converts it to high yields paid to the investors—the bass part.
c) Junk bond's credit rating
 The corporate revolves under a rating of BB [+]. It is either rated by Moody's Standard & Poor's (Kelly, 2021). The rating implies that the bond issuers are at risk of insolvency if the debt is not settled; hence for a bond issuer to evade defaulting, set settlement is paramount.
d) Unsecured junk bond by investors
A junk bond is unsecured; there is no assurance that the investments do mature into principal. Besides, investors in junk bonds are never guaranteed conventional interest incomes like what is offered in other companions.
e) Highly yielding corporate
Junk bonds are high yield; the corporate pays its investors a high principal since it unsecured (Kelly, 2021). It is done to reduce the risk of losing investors to other corporates in the industry.
Chapter 2
Indonesia Sovereign bond
a) Investors in sovereign Indonesia
The Indonesian government is a sovereign bond that gets its investors from other developed countries. The reason for opting for foreign investors is due to the struggling economy of Indonesia and the lower value of their currency, the Rupiah (Scott, 2020)
b) Reason for sovereign Indonesia assurance
The insurance done by the government is to raise capital to stabilize the economy of the country. Since the country is ranked among struggling governments in terms of economic stability, the government's mechanism of insurance bonds to developed states comes in handy in boosting the economy.
c) Sovereign Indonesia's denomination
The bonds issued by the government are denominated in yen. It is a result of the unstable economy of developing Indonesia. The Rupiah is its curr...