select a publicly listed company. You are highly advised to select a mid-cap company with at least three bonds currently trading at the market.

Assume that this company is currently looking at initiating another bond offering. Analyse all the risks involved with investing into a bond offering of that particular company. You should try to separate out and quantify as much of the risks as possible (see the section on spread below).

At the very least, the bond duration for the offering must be computed. The company is contemplating another bond offering in the near future. Your task is to quantify the risk premium for the company by finding the interest rate spread over an appropriate interest rate curve. The interest rates for different maturities are usually not the same and corporate bonds are usually priced with an appropriate spread over a benchmark interest rate curve, which represents the risk-free rate.

You should select a proper benchmark over which to find the spread for your chosen company. Essentially you are trying to quantify the risk premium of investing into this particular company over the benchmark rates.

Keep in mind that your spread should be given in basis points over the benchmark curve. Try to break down the spread into its component risk factors as much as possible. In your report, you should discuss the spread and its component risk factors as well as suggesting enhancements or modifications in reference to a plain vanilla bond offering. After calculating the spread, suggest a bond offering with a maturity date, notional amount, and coupon rate. The company has indicated that they want to issue bonds with prices close to par as possible. The maturity for the proposed bond offering cannot be the same as the maturity of any of the companys existing bonds, nor can it be closer than six months in maturity to any bonds it currently has circulating in the market. You should show your work and calculation in an Excel spreadsheet.

Finally, suggest an alternative source of funding for the company. Highlight the differences between issuing a bond and issuing an instrument through the alternative source of funding. You should discuss the differences in risk and return from both the companys and investors perspectives, along with any other nuances in the proposed alternative financial market.

Your task is to produce a maximum 3,000-words written work for a bond offering for a publicly listed company, analyzing the risks involved in investing into the company, providing the company with a proposed bond offering with a suggested par-equivalent coupon rate, and discussing other sources of funding as an alternative to the bond offering.

Please need an excel sheet