Question
1.)Assume it is Nov 1 st 2022. Calculate the value of this security 2.)Calculate the arbitrage-free value of the bond 3.)This security is convertible into
1.)Assume it is Nov 1st 2022. Calculate the value of this security
2.)Calculate the arbitrage-free value of the bond
3.)This security is convertible into 15.1 shares of common stock on or after 1 November 2023. Explain how you would use a binomial model to find the value of this security.
| S&P Bond Rating: | BB- | ||||||||
| Instrument ID | Description | Balance Sheet Amt Out (USD) | Current Amt Out (USD) | Coupon Rate | Coupon Type | Issue Date | Maturity Date | Issue Curr | Seniority |
| ST Debt | 0.0 | 0.0 | |||||||
| - | Bank Overdraft | 1.4 | 1.4 | - | - | - | - | USD | SNR Unsec |
| - | Adjustment - Other Current Liabilities | -1.4 | -1.4 | - | - | - | - | USD | Other |
| Revolving Credit | 0.0 | 0.0 | |||||||
| FDS13ZDW0 | Senior Sec. Revolving Credit Facility | 0.0 | 0.0 | - | Variable | 12/19 | 12/24 | USD | SNR Sec |
| Notes/Bonds | 199.5 | 199.5 | |||||||
| 483548AF0 | Kaman Corp | 199.5 | 199.5 | 3.250% | Fixed | 05/18 | 05/24 | USD | SNR Conv |
| Other | -2.0 | -2.0 | |||||||
| - | Issuance Costs - 3.25% Convertible Bond | -2.0 | -2.0 | - | - | - | - | USD | Other |
| LT Debt Total | 197.5 | ||||||||
| Current Portion of LTD | 0.0 | ||||||||
| Net LT Debt Total | 197.5 | ||||||||
| ST Debt Total | 0.0 | ||||||||
| Total Debt | 197.5 | 197.5 | |||||||
| US Treasury Bond Yields | |||||||||
| 3-month | 3.33% | ||||||||
| 6-month | 4.07% | ||||||||
| 12-month | 4.22 | ||||||||
| 2-year | 4.31% | ||||||||
| 3-year | 4.33% | ||||||||
| 4-year | 4.26% | ||||||||
| 5-year | 4.15% | ||||||||
| BB- yield | 7.28% | ||||||||
| BB risk spread | 3.50% |
|
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Handbook On Corporate Governance In Financial Institutions
Authors: Christine A. Mallin
1st Edition
1784711780, 978-1784711788
