Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

26) You are comparing the two bonds below. Please note FIVE differences AND what impact EACH would have on how the bonds should trade relative

image text in transcribedimage text in transcribed

26) You are comparing the two bonds below. Please note FIVE differences AND what impact EACH would have on how the bonds should trade relative to each other in the secondary market (30 points) BOND A: HD 2 3/4 09/15/51 Corp Actions. Settings Page 1/12 Security Description: Bond 99 No Notes 99 Buy 96 Sell 29 Bond Description 20 Issuer Description Pages Issuer Information Identifiers 10 Bond Info Name HOME DEPOT INC FIGI BBG012F5DCF9 17 Addtl Info Industry Retailers (BCLASS) I Reg/Tax CUSIP 437076CK6 ISIN Security Information US437076CK64 14 Covenants 19 Guarantors Mkt Iss GLOBAL Bond Ratings 19 Bond Ratings Ctry/Reg US Currency USD Moody's A2 17) Identifiers Rank Sr Unsecured Series S&P A 13 Exchanges 29 Inv Parties Coupon 2.750000 Type Fixed Fitch A 20 Fees, Restrict Con Freq S/A DBRS A 21 Schedules Day Cnt 30/360 Iss Price 98.93000 Issuance & Trading 23 Coupons Maturity 09/15/2051 Amt Issued/Outstanding Quick Links MAKE WHOLE @15.000 until 03/15/51/ CALL 03/ - USD 1,000,000.00 (M) / 33 ALLQ Pricing Iss Sprd +82.00bp vs T 2 05/15/51 USD 1,000,000.00 (M) 30 QRD Qt Recap Calc Type (1)STREET CONVENTION Min Piece/Increment 36 TDH Trade Hist 39 CACS Corp Action Pricing Date 09/07/2021 2,000.00/ 1,000.00 30 OF Prospectus Interest Accrual Date 09/21/2021 Par Amount 1,000.00 37) ON See News 1st Settle Date 09/21/2021 Book Runner BofA, GS,JPM,USB Holders 1st Coupon Date 03/15/2022 Reporting TRACE 8 HDS 66 Send Bond 13 Reg/Tax HD 2 3/4 09/15/51 Corp Actions Settings Page 4/12 Security Description: Bond 94 No Notes 99 Buy 98 Sell 29 Bond Description 20 Issuer Description Pages Covenants 10 Bond Info Negative Pledge No 12 Addtl Info 50 Change of Controll Yes 101.00 Fundamental Change No 14 Covenants Limit of Indebtedness No 16 Bond Ratings Cross Default No 1) Identifiers Negative Covenant Yes 52) Certain Sales of Assets & Yes Yes 20 Restriction on Activities Fees, Restrict No 21) Schedules Debt Service Coverage Ratio 2 Coupons Free Cash Flow To Debt Service Ratio No Quick Links Restrictive Covenant Yes 37 ALLQ Pricing 53 Merger Restrictions Yes 19 Guarantors 18 Exchanges 19 Inv Parties 20LAND ses BOND B: 10 Bond Ratings LOW 3 10/15/50 Corp Actions Settings Page 1/12 Security Description: Bond 90 No Notes 95 Buy 90 Sell 29 Bond Description 20 Issuer Description Pages Issuer Information Identifiers 21 Bond Info Name LOWE'S COS INC FIGI BBGOOXSSPH19 12 Addtl Info CUSIP Industry Retailers (BCLASS) 548661DZ7 Reg/Tax 14 Covenants Security Information ISIN US548661D279 19 Guarantors Mkt Iss GLOBAL Bond Ratings Ctry/Reg US Currency USD Moody's Baal 1.) Identifiers Rank Sr Unsecured Series S&P BBB+ 10 Exchanges 19 Inv Parties Coupon 3.000000 Type Fixed DBRS BBBHu 20 Fees, Restrict Con Freq S/A Composite BBB+ 20 Schedules Day Cnt 30/360 Iss Price 99.90200 Issuance & Trading 23 Coupons Maturity 10/15/2050 Amt Issued/Outstanding Quick Links MAKE WHOLE @25.000 until 04/15/50/ CALL 04/... USD 1,750,000.00 (M) / 30 ALLQ Pricing USD ORD Iss Sprd +140.00bp vs T 14 05/15/50 Qt Recap 1,750,000.00 (M) 30 TDH Min Piece/Increment Trade Hist Calc Type (1)STREET CONVENTION 34 CACS Corp Action Pricing Date 10/07/2020 2,000.00/ 1,000.00 30 CF Prospectus Interest Accrual Date 10/22/2020 Par Amount 1,000.00 37) ON Sec News 1st Settle Date 10/22/2020 Book Runner BCLY,GS,USB,WFS 19 HDS Holders 1st Coupon Date 04/15/2021 Reporting TRACE LOW 3 10/15/50 Corp Actions Settings Page 4/12 Security Description: Bond 94 No Notes 99 Buy 90 Sell 29 Bond Description 20 Issuer Description Pages Covenants 10 Bond Info Negative Pledge No 12 Addtl Info 50 Change of Controla Yes @ 101.00 Reg/Tax Fundamental Change No 14 Covenants 52 Limit of Indebtednessa Yes 18 53) Cross Default Yes Negative Covenant Yes 18 Exchanons 54 Certain Sales of Assets Yes 10 22 Fees, Restrict Restriction on Activities Yes 20 20 Schedules Debt Service Coverage Ratio No 23 Coupons Free Cash Flow To Debt Service Ratio No Quick Links Restrictive Covenant Yes 37 ALLQ Pricing 55 Merger Restrictions Yes 71. ARAD 19 Guerators 16 Bond Ratings in identifiers 29 Inv Parties 26) You are comparing the two bonds below. Please note FIVE differences AND what impact EACH would have on how the bonds should trade relative to each other in the secondary market (30 points) BOND A: HD 2 3/4 09/15/51 Corp Actions. Settings Page 1/12 Security Description: Bond 99 No Notes 99 Buy 96 Sell 29 Bond Description 20 Issuer Description Pages Issuer Information Identifiers 10 Bond Info Name HOME DEPOT INC FIGI BBG012F5DCF9 17 Addtl Info Industry Retailers (BCLASS) I Reg/Tax CUSIP 437076CK6 ISIN Security Information US437076CK64 14 Covenants 19 Guarantors Mkt Iss GLOBAL Bond Ratings 19 Bond Ratings Ctry/Reg US Currency USD Moody's A2 17) Identifiers Rank Sr Unsecured Series S&P A 13 Exchanges 29 Inv Parties Coupon 2.750000 Type Fixed Fitch A 20 Fees, Restrict Con Freq S/A DBRS A 21 Schedules Day Cnt 30/360 Iss Price 98.93000 Issuance & Trading 23 Coupons Maturity 09/15/2051 Amt Issued/Outstanding Quick Links MAKE WHOLE @15.000 until 03/15/51/ CALL 03/ - USD 1,000,000.00 (M) / 33 ALLQ Pricing Iss Sprd +82.00bp vs T 2 05/15/51 USD 1,000,000.00 (M) 30 QRD Qt Recap Calc Type (1)STREET CONVENTION Min Piece/Increment 36 TDH Trade Hist 39 CACS Corp Action Pricing Date 09/07/2021 2,000.00/ 1,000.00 30 OF Prospectus Interest Accrual Date 09/21/2021 Par Amount 1,000.00 37) ON See News 1st Settle Date 09/21/2021 Book Runner BofA, GS,JPM,USB Holders 1st Coupon Date 03/15/2022 Reporting TRACE 8 HDS 66 Send Bond 13 Reg/Tax HD 2 3/4 09/15/51 Corp Actions Settings Page 4/12 Security Description: Bond 94 No Notes 99 Buy 98 Sell 29 Bond Description 20 Issuer Description Pages Covenants 10 Bond Info Negative Pledge No 12 Addtl Info 50 Change of Controll Yes 101.00 Fundamental Change No 14 Covenants Limit of Indebtedness No 16 Bond Ratings Cross Default No 1) Identifiers Negative Covenant Yes 52) Certain Sales of Assets & Yes Yes 20 Restriction on Activities Fees, Restrict No 21) Schedules Debt Service Coverage Ratio 2 Coupons Free Cash Flow To Debt Service Ratio No Quick Links Restrictive Covenant Yes 37 ALLQ Pricing 53 Merger Restrictions Yes 19 Guarantors 18 Exchanges 19 Inv Parties 20LAND ses BOND B: 10 Bond Ratings LOW 3 10/15/50 Corp Actions Settings Page 1/12 Security Description: Bond 90 No Notes 95 Buy 90 Sell 29 Bond Description 20 Issuer Description Pages Issuer Information Identifiers 21 Bond Info Name LOWE'S COS INC FIGI BBGOOXSSPH19 12 Addtl Info CUSIP Industry Retailers (BCLASS) 548661DZ7 Reg/Tax 14 Covenants Security Information ISIN US548661D279 19 Guarantors Mkt Iss GLOBAL Bond Ratings Ctry/Reg US Currency USD Moody's Baal 1.) Identifiers Rank Sr Unsecured Series S&P BBB+ 10 Exchanges 19 Inv Parties Coupon 3.000000 Type Fixed DBRS BBBHu 20 Fees, Restrict Con Freq S/A Composite BBB+ 20 Schedules Day Cnt 30/360 Iss Price 99.90200 Issuance & Trading 23 Coupons Maturity 10/15/2050 Amt Issued/Outstanding Quick Links MAKE WHOLE @25.000 until 04/15/50/ CALL 04/... USD 1,750,000.00 (M) / 30 ALLQ Pricing USD ORD Iss Sprd +140.00bp vs T 14 05/15/50 Qt Recap 1,750,000.00 (M) 30 TDH Min Piece/Increment Trade Hist Calc Type (1)STREET CONVENTION 34 CACS Corp Action Pricing Date 10/07/2020 2,000.00/ 1,000.00 30 CF Prospectus Interest Accrual Date 10/22/2020 Par Amount 1,000.00 37) ON Sec News 1st Settle Date 10/22/2020 Book Runner BCLY,GS,USB,WFS 19 HDS Holders 1st Coupon Date 04/15/2021 Reporting TRACE LOW 3 10/15/50 Corp Actions Settings Page 4/12 Security Description: Bond 94 No Notes 99 Buy 90 Sell 29 Bond Description 20 Issuer Description Pages Covenants 10 Bond Info Negative Pledge No 12 Addtl Info 50 Change of Controla Yes @ 101.00 Reg/Tax Fundamental Change No 14 Covenants 52 Limit of Indebtednessa Yes 18 53) Cross Default Yes Negative Covenant Yes 18 Exchanons 54 Certain Sales of Assets Yes 10 22 Fees, Restrict Restriction on Activities Yes 20 20 Schedules Debt Service Coverage Ratio No 23 Coupons Free Cash Flow To Debt Service Ratio No Quick Links Restrictive Covenant Yes 37 ALLQ Pricing 55 Merger Restrictions Yes 71. ARAD 19 Guerators 16 Bond Ratings in identifiers 29 Inv Parties

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Analysis And Valuation Using Financial Statements Text And Cases

Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard

3rd Edition

0324118945, 9780324118940

More Books

Students also viewed these Finance questions