Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 1 April 2016
Revision date: 12-Apr-2016
Length: 14 pages
Data source: Generalised experience
Abstract
This case invites students to estimate the costs of a new debt issue. Designed as an introductory case for use early on in an MBA course, it requires students to compute the yield-to-maturity on the Worldcom bonds from price data and from spreads over Treasury securities for bond-rating categories. The exercise allows for discussion of benchmarking in the context of credit markets.
Industry:
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Abstract
This case invites students to estimate the costs of a new debt issue. Designed as an introductory case for use early on in an MBA course, it requires students to compute the yield-to-maturity on the Worldcom bonds from price data and from spreads over Treasury securities for bond-rating categories. The exercise allows for discussion of benchmarking in the context of credit markets.
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