What were the last prices of the bonds (listed in the Last Sale column)?
As an initial response to the discussion topic please create a Power Point presentation of 7-8 slides plus the title slide that contains the main results of all questions part 2 of the Research Project part 2 – Spectrum Brands (SPB) (attached) These slides should include your recommendations, with supporting rationale, 1. as to whether Spectrum Brand’s recent trend in financial and stock performance is of sufficient financial strength to warrant entering in a long-term investment in bonds and/or stocks if the company. 2. on the financial strategy of the company, how to best balance Spectrum Brands (SPB) financial leverage to optimize shareholder wealth going forward taking into consideration the company’s current market position, credit rating, dividend policy, etc. Questions: 1.What were the last prices of the bonds (listed in the Last Sale column)? Assume that par value of the bond is $1,000. How much the investor will pay for the bond if he/she purchased the bond at the Price listed in the Last Sale column. Show your work in your project. 2.Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project. 3.Assume that par value of the bond is $1,000. Calculate the current yield of the bonds. Show your work in your project. 4.How much is the YTM listed in quotations of the bonds (in the Last Sale column – Yield) (no calculations are required for this question? 5.Write a 1-2 page of the analysis of the bonds. In your analysis you should answer the following questions. a)If you are going to buy a bond issued by Spectrum Brands, which bond would you choose? Why? b)Are these bonds callable? If the bonds that you chose are callable (non-callable), will it change your decision to buy them? c)If you are an investor who is looking for a bond to invest in, are you going to buy a bond that you chose? Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not?
