Posted: 13 Mar 2012
Date Written: July 26, 2011
This case consists primarily of excerpts from term sheets and prospectuses for six securities offerings made by US companies during 2009-2010, just after the financial crisis and recession of 2008-09. There are three issues of senior unsecured notes, one floating rate note, one equity offering, and one convertible note. The issuers are Microsoft, Coca Cola Enterprises, Norfolk Southern, IBM, Ford Motor, and Cephalon.
Learning Objective: The case permits a discussion of basic bond math: computing current yield and yields to maturity for simple bonds. It also facilitates a discussion of the variety of securities and features used by corporate issuers, as well as the variety of concerns and motivations of both issuers and investors.
Suggested Citation: Suggested Citation