Question 3

Question 3 A corporation would like to recapitalize it's 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 B USD 750,000,000.00 USD 500,000,000.00 USD (1,500,000,000.00 99.98 99.41 99.59 $1,000 $1,000 $1,000 3.8750% 28/2/2027 3.1250% 13/3/2025 5.5500% 13/1/2026 Question 3 A corporation would like to recapitalize it's 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 B USD 750,000,000.00 USD 500,000,000.00 USD (1,500,000,000.00 99.98 99.41 99.59 $1,000 $1,000 $1,000 3.8750% 28/2/2027 3.1250% 13/3/2025 5.5500% 13/1/2026