Compute what are views to issue a corporate bond

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Reference no: EM132758401

Problem 1: If you are a CFO in Canada for a mid-sized company, your company's credit rating is BBB. In the capital market, BBB credit rating company is easy to raise capital from bond issuance, and the YTM is 2% higher than the 10 year government bond; Your company is now with relatively sufficient fund. Given you expect that next year 2021, after the Pandemic is close to end, economy will be rebounded. Your company is in the real estate business as a developer focusing on Great Vancouver Area. Your shareholders are badly impacted by the Pandemic business slowdown. In this situation, and considering the bond features, what are your views to issue a corporate bond, ie., would you think to consider issuing bond? If Yes, what kind of factors you are considering and please list and explain? If No, why, please list your arguments.

Reference no: EM132758401

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