Business Finance Homework Help

Business Bonds and Investment Analysis Paper

 

You have a choice to invest $200mm in a 30-year bond issued by Boston College or in a similar bond issued by WalMart.  Please compare the two credits and decide which one you would prefer.  Both bonds are trading at par (100) and bear a 3.5% coupon.  Both are taxable credits.  Both are senior debt.  Neither is callable.  You will be holding this investment until maturity. The focus is on fundamentals and not trading.

Please use inside and outside views, also please implement premortems.

  inside and outside views is specifically a concept taught by Michael Mauboussin

  premortems are essentially analyzing worst case scenarios and just how bad they would be

This is for a Fixed Income analysis class.