Question: FNCE 3170 Guidelines for Bond Assignment Winter 2022 Each student has been assigned a unique bond to complete the FNCE 3170 assignment. The list of

FNCE 3170 Guidelines for Bond Assignment Winter 2022 Each student has been assigned a unique bond to complete the FNCE 3170 assignment. The list of bonds, with your specific assigned bond, was emailed to you as well as posted on the Moodle course website. Please find your bond from the list that was selected from the bond exchange of the New York Stock Exchange (NYSE). Your bond has the specifications of the issuer (corporation name), issue (coupo rate, descriptor such as senior notes, and maturity date). You are to analyze the issuer and specific bond for the credit risk and assign a bond rating in accordanc with the Standard & Poor's ratings system. The credit risk has 2 components: issuer general credit risk and specific bond issue risk (notching). Some general guidelines in completing this task are: company analysis, industry (and perhaps some specific competitor) analysis, economic analysis tied to the impac on your specific firm, capital market analysis related to the effect on your specific firm and bond issue, and examining the indenture for clauses that would cause you to raise or lower the credit risk such as collateral and seniority. The liquidity (marketability) risk would need to be briefly addressed if you assig a junk bond rating. Any and all publicly available information relevant to your analysis can be used. A key source of information on your corporation can be found in the US Securities Exchange Commission (SEC) Edgar database available for free via the internet at https://www.sec.gov/edgar.shtml There are numerous filings of which an important filing is the annual report (10K) submitted to the US SEC. The company analysis should have 2 years (need 3 years of data) of trend analysis. This will necessitate downloading more than one 10K. There are other filings that may be useful. To do the notching you need to obtain the bond issue indenture. One source is the prospectus when the bond was originally sold. Another filing by the company is an 8K for significant events (that have occurred or may occur). You would only be interested in 8K filings in the most recent year which may have none. As your bond is a publicly traded

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