Applying i5 Principles to a Bond Rating Exercise: A Hands-On Approach to Credit Evaluation

This session presents a hands-on credit evaluation exercise applying the PRME i5 principles of meaningful, active, social, iterative, and authentic learning. Participants rate real-world unrated debt instruments using financial ratios and qualitative data to assign ratings and interest rates. No calculator is required, ensuring accessibility. Working in pairs, attendees simulate credit analysis and uncover biases in rating systems. The activity fosters collaboration, critical thinking, and practical finance skills while exploring adaptations for classrooms. By integrating i5 principles, this exercise offers an engaging, impactful approach to finance education, addressing challenges in credit access and rating fairness.