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Question 22 2 pts Your boss asks you to perform a financial analysis on Buses R Us and recommend a trade that uses $15mm of
Question 22 2 pts Your boss asks you to perform a financial analysis on Buses R Us and recommend a trade that uses $15mm of capital. The firm that you work at is willing to take a calculated risk. You need to take into account your total return. After you do your analysis you think there is an 80% chance the company will file bankruptcy in 2024. Please recommend a trade. Capital Structure 4% Secured Bank Term Loan due 2025 $150mm outstanding current price - pa 10% Sr. Notes due 2023 $400mm outstanding current price.84 13% Sub Notes due 2025 $225mm outstanding current price.65 O short $7mm Sr Notes and buy (go long) $3mm Sub Notes O buy $15mm Sr. Notes short $10mm Sr. Notes O buy $10mm Sub Notes Question 22 2 pts Your boss asks you to perform a financial analysis on Buses R Us and recommend a trade that uses $15mm of capital. The firm that you work at is willing to take a calculated risk. You need to take into account your total return. After you do your analysis you think there is an 80% chance the company will file bankruptcy in 2024. Please recommend a trade. Capital Structure 4% Secured Bank Term Loan due 2025 $150mm outstanding current price - pa 10% Sr. Notes due 2023 $400mm outstanding current price.84 13% Sub Notes due 2025 $225mm outstanding current price.65 O short $7mm Sr Notes and buy (go long) $3mm Sub Notes O buy $15mm Sr. Notes short $10mm Sr. Notes O buy $10mm Sub Notes
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