Question
A corporation would like to recapitalize its capital structure by issuing a bond. Bonds from this corporation had been rated as BBB+. Which one of
A corporation would like to recapitalize its capital structure by issuing a bond. Bonds from this corporation had been rated as BBB+. Which one of the following bond issues poses the least risk to the issuer corporation? Explain your answer in detail.
| Bond | Currency | Issue Volume | Issue Price | Denomination | Coupon | Maturity Date |
| A | USD | 750,000,000.00 | 99.98 | $1,000 | 3.8750% | 28/2/2027 |
| B | USD | 500,000,000.00 | 99.41 | $1,000 | 3.1250% | 13/3/2025 |
| C | USD | 1,500,000,000.00 | 99.59 | $1,000 | 5.5500% | 13/1/2026 |
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
