Solution-Sewer revenue bonds, Build America Mutual ("BAM"),

Sewer revenue bonds

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Build America Mutual ("BAM"), rated AA, will charge $50,000 to insure $10,000,000 of BBB rated sewer revenue bonds. The current BBB yield curve is pricing with a credit spread of 50bps while the AA curve is pricing at 15bps. Should the University use bond insurance if it is a two year note?

Reference no: EM133272596

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Sewer revenue bonds

Reference no: EM133272596

Reference no: EM133272596

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