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Scenario:
You're a leader of nonprofit that serves youth struggling with addiction. You are $90,000 short on your fundraising goal and will have to cut programming if you don't find dollars soon. A popular club in town that hosts huge parties and known for a heavy drinking culture offers you $100,000 donation for programming. They are also running an ad campaign on a popular local radio station to promote their nightlife and want to share during their 30 second commercial that ticket sales from the party will support your organization. Taking the money means support for programming as well as free marketing. What would you do? What steps would you take to make this decision? What are the consequences of saying yes or no? How do you weigh these consequences as a leader?
A 5-year bond with a 4.45% coupon sells for $107.48. A 7-year bond with a 5.75% coupon sells for 116.564. The conversion factor for the 5-year bond is 0.933891 while the 7-year bond is 0.98588.
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