Alimentation Couche-Tard Inc. operates over 8,000 convenience stores in North America, Scandinavia, Poland, the Baltics, and Russia.
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a. Looking at Couche-Tard€™s three tranches (which are portions of a bond issue that have different maturity dates, interest rates, etc.) of senior unsecured notes, comment on the relationship between the interest rates and the length of time to maturity of the notes. As an investor, explain why this relationship would be important to you.
b. Explain why Couche-Tard may have wanted to spread this borrowing across three tranches with different maturities.
c. What do we know about these notes given that the effective rates of interest are higher than the coupon rates for all three tranches?
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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a Based on CoucheTards three tranches the longer the term to maturity the higher the interest rate r...View the full answer
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Related Book For 
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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