4.5 Assignment: Financing S&S Air’s Expansion Plans with a Bond Issue

  1. Review the rubric to make sure you understand the criteria for earning your grade.
  2. Using a Word document, complete the requirements of the Mini-case Financing S & S Airs Expansion Plans with a Bond Issue, located at the very end of Chapter 7 in your course textbook.
  3. Your response should take the form of a memo, as explained in the case.
    1. For each of the ten bond features listed, briefly describe the likely impact of each of the features on the coupon rate demanded by potential bond investors when this new bond is issued.  Will it cause the required coupon rate to be higher or lower?
    2. In addition, for each of the ten bond features listed, briefly describe the advantages or disadvantages, from S&S Airs  perspective, of implementing that feature with the newly-issued bond.
  4. When you have completed your assignment, save a copy for yourself and submit a copy to your instructor by the end of the workshop.