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Super Chicken Sdn Bhd is a listed company that is the largest egg producer in Malaysia. It intends to expand its operations to Indonesia and
Super Chicken Sdn Bhd is a listed company that is the largest egg producer in Malaysia. It intends to expand its operations to Indonesia and is launching, in Singapore, a 10-year US$100 million bond issue at a coupon rate of LIBOR + 8%. The bond will be collateralised by the assets of 10 farms in Malaysia as well as the assets of 10 farms that will be developed in two years in Indonesia As the bond analyst for the Singapore Bond Fund, you have been instructed to look into the Explain what type of bond is the 10-year Superchicken USS bond paying a coupon of (2 marks) Besides interest rate and reinvestment risks, distinguish and discuss 3 types of risks (12 marks) merits and demerits of the bond issue (a) LIBOR+8%? (b) that a Singapore investor who invests in this bond faces
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