A CORPORATE MANAGEMENT REPORT / TUTORIALOUTLET DOT COM A CORPORATE MANAGEMENT REPORT / TUTORIALOUTLET DOT

A corporate management report
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Write a corporate management report in which you present a
valuation model for a proposed new issuance of corporate
bonds with a face value of $70 million dollars. The report should
include numerical illustrations within tables and graphics,
along with discussions that guide the manager through the
illustrations and graphics. The valuation model should be
hypothetical in nature.
In your report, be sure to addresses the following:
• Develop and present a valuation model for corporate debt with a
face value of $70 million dollars. The model should use
hypothetical assumptions for the coupon rate and other characteristics
as well as a hypothetical market interest rate. You
must also select a maturity for the bonds and the frequency of the
coupon payments. The market rate should be
justifiable/reasonable given current market conditions. Explain why
the model will be important for the issuance process
that is being considered.
• Initiate a discussion for the possible determinants of the market
interest rate that you chose. This should be a general
discussion. For example, you should explain how the inflation rate in
the economy could be expected to impact the market
rate that you chose.
• Explain how the market rate you chose will be dependent upon the
maturity. Describe what you believe to be the most
persuasive theory associated with the shape of market interest rates
across the maturity spectrum (i.e., the yield curve).
• Comment on how the different bond characteristics would influence
the valuation of the bond. Provide illustrations in a
summary table format for how the value might adjust for the inclusion
of call provisions and sinking funds. Explain the