Company is rated investment grade has 2 bonds with 5% coupon, trading 95% and mature in 7 years. Bonds are identical, expect one has a 102% change of control, other does not. the company should be a target OF LBO. what trade recommendations would you make, why?

Answer rating: 100% (QA)

As an investmentgrade company with two bonds having a 5 coupon rate and trading at 95 of their face value with a maturity of 7 years the company is in ... View the full answer