Group 4 - Case 8 v1

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/16/2011 for the course FIN M0110 taught by Professor Kwak during the Spring '11 term at Delaware State.

Page1 / 3

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online