Caroline decided to expand her frozen food business, Zizan Inc., a private company in Texas. She seeks help from an underwriter that can assist her to issue 20-year new bonds with a total amount of USD 50 million. Jason Bourn who works with Merrill Lynch (an underwriter) agreed to help Caroline on this matter. He discuss with Caroline on the possible feature of the bond and coupon rate for Zizan Inc. Caroline, however is deliberating on the costs and benefit of some of the bond features as she is uncertain on how each of bond feature can influence the coupon rate.QuestionsSince you are working as assistant for Caroline, you have been asked by Caroline to discuss in detail with Jason Bourne and report back to her. You need to report on the impact of bond feature on bond’s coupon rate. She wants you to also include the advantages and disadvantages of each of the bond’s feature. The features of the bond that you need to investigate is such as followingi. Is the bond having any collateral as security?ii. Bond’s seniorityiii. Is there any sinking fund availableiv. Is the bond has any call provision with specified price and date?v. Is there any deferred call attach together with the call provisionvi. Is there any make-whole call provision?vii. Is there any positive and covenants attached? Discuss also other possible positive and negative covenants that Zizan Inc should considerviii. Is the bond has any conversion feature?ix. Is the bond has a floating rate coupon?
Frozen food business
We help you get better grades, improve your productivity and get more fun out of college!!
How it works – it’s easy
Place your Order
Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.
Make a payment
The total price of your order is based on number of pages, academic level and deadline.
We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to make sure that the assignment meets all of your requirements.
Once complete, we’ll send your assignment via the email provided on the order form.