Paper , Order, or Assignment Requirements

Either start with recommendation and then support it; or, build the case and then end with the recommendation. Recommendation should cover whether you consider the company credit worthy, whether or not the bond should be purchased as an investment and what the target market yield (YTM) for the bond is.
• Discuss company’s ability to generate free cash flow
• Discuss company’s liquidity – reference appropriate ratios
• Discuss company’s level of indebtedness – reference appropriate ratios
• Discuss company’s ability to service the debt – reference appropriate ratios
Ratio 2013 2014 2015 Industry Average

• Calculate recommended market yield for purchase of the bond
• Discuss risk-free-rate
• Discuss Credit Spread