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Group 4 - Case 8 v1 - Group 4 Case 8 Company Sirius...

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Group 4 Case 8 Company Sirius Maturity 10 Coupon 12% Face Value $50,000,000 1 Question 1 - see next worksheet (Yield Curve) 2 Question 2 - see next worksheet (Yield Curve) 3 Question 3 -Rating BB- 4 Question 4 Year 1 2 3 4 5 6 7 8 9 10 avg avg split diff betw/ 7-10 4a Treasury Rates 0.27 0.45 0.72 1.1 1.47 1.82 2.16 2.38 2.59 2.81 4b Spread in bp 205 215 225 235 255 275 295 335 335.22 415 Spread in % 2.05 2.15 2.25 2.35 2.55 2.75 2.95 3.35 3.35 4.15 4c Yield 2.32 2.6 2.97 3.45 4.02 4.57 5.11 5.73 5.95 6.96 4d Cash Flow 6000000 6000000 6000000 6000000 6000000 6000000 6000000 6000000 6000000 56000000 5 Present Value $5,863,956 $5,699,759 $5,495,651 $5,239,782 $4,926,823 $4,590,217 $4,232,949 $3,843,040 $3,567,867 $28,574,200 6 Price $72,034,244.56 YTM 6.01% 7 Ba2/BB Spread in bp 195 205 215 225 245 265 285 325 365 405 Spread in % 1.95 2.05 2.15 2.25 2.45 2.65 2.85 3.25 3.65 4.05 Yield 2.22 2.5 2.87 3.35 3.92 4.47 5.01 5.63 6.24 6.86 Cash Flow 6000000 6000000 6000000 6000000 6000000 6000000 6000000 6000000 6000000 56000000 Present Value $5,869,693 $5,710,886 $5,511,693 $5,260,092 $4,950,574 $4,616,644 $4,261,246 $3,872,243 $3,478,853 $28,842,728 Price $72,374,653.13 YTM 5.94% 8 Increase in Cash $340,409 from Issue Group 4 Members: Nguyen Thi Thanh Xuan Nguyen Luong Qui Trinh Ngoc Thanh Tran Xuan Toan Tran Ngoc Thiem Nguyen Thi Phuong Nguyen Thanh Tung 83
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Group 4 Case 8 Question1 Yield Curve Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr 11/2/2010 0.13 0.13 0.16 0.22 0.34 0.51 1.15 1.87 2.63 3.58 3.93 11/3/2010 0.13 0.13 0.16 0.22 0.34 0.49 1.11 1.85 2.67 3.71 4.09 11/4/2010 0.13 0.13 0.17 0.21 0.33 0.45 1.04 1.73 2.53 3.62 4.04 11/5/2010 0.13 0.13 0.16 0.22 0.38 0.51 1.1 1.77 2.58 3.69 4.12 11/8/2010 0.12 0.13 0.16 0.22 0.41 0.59 1.13 1.78 2.6 3.7 4.12 11/9/2010 0.11 0.13 0.16 0.24 0.46 0.66 1.27 1.91 2.72 3.83 4.25
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