Tractor Supply

-6.04%

1. Default risk: The primary risk associated with debentures is the risk of default. This means that the issuer of the debentures may not make the scheduled payments, either in full or in part. This default can lead to a loss of principal amount to the investors.

2. Interest Rate Risk: Tractor Supply may face risk due to changes in interest rates. If the exchange rates of the currency the instrument is denominated in go up, then the interest payable to the debenture holders will become more expensive for Tractor Supply. Similarly, if the exchange rates of the currency the instrument is denominated in go down, then the interest payable to the debenture holders will become cheaper for Tractor Supply.

3. Credit Risk: Tractor Supply may also face credit risk associated with debentures. This means that the issuer of the debentures may be rated poorly by the lenders in the market. This poor rating could affect the amount of interest payable and the ability of Tractor Supply to refinance in the future.

4. Liquidity Risk: Tractor Supply may also face liquidity risk associated with debentures. This means that they may not have the financial means to repurchase the debentures if the market value of the debentures depreciates. This places Tractor Supply at financial risk in the event of market instability.