Write a corporate management report in which you present a valuation

Write a corporate management report in which you present a valuation
model for a proposed new issuance of corporate bonds with a face value
of $70 million dollars. The report should include numerical
illustrations within tables and graphics, along with discussions that
guide the manager through the illustrations and graphics. The
valuation model should be hypothetical in nature.

In your report, be sure to addresses the following:

• Develop and present a valuation model for corporate debt with a
face value of $70 million dollars. The model should use hypothetical
assumptions for the coupon rate and other characteristics as well as a
hypothetical market interest rate. You must also select a maturity for
the bonds and the frequency of the coupon payments. The market rate
should be justifiable/reasonable given current market conditions.
Explain why the model will be important for the issuance process that
is being considered.

• Initiate a discussion for the possible determinants of the market
interest rate that you chose. This should be a general discussion. For
example, you should explain how the inflation rate in the economy
could be expected to impact the market rate that you chose.

• Explain how the market rate you chose will be dependent upon the
maturity. Describe what you believe to be the most persuasive theory
associated with the shape of market interest rates across the maturity
spectrum (i.e., the yield curve).

• Comment on how the different bond characteristics would influence
the valuation of the bond. Provide illustrations in a summary table
format for how the value might adjust for the inclusion of call
provisions and sinking funds. Explain the nature of each of these
characteristics.

• Explain how the financial health of the corporation as revealed
through financial statements and ratios will impact the bond rating
and in turn, the valuation model. Cite and discuss related academic
research on bond ratings and financial analysis. Create a summary
table that depicts possible impacts on the bond valuation model from
the corporation having weaker and stronger financial health. Use
reasonable assumptions for the revaluation. Clearly explain what is
changing within the model for your assumption of both weak and strong
financial health. Also, determine if a minimum wage worker would be
able to afford to buy the bond?

Support your report with at least four resources. In addition to these
specified resources, other appropriate scholarly resources, including
older articles, may be included.

Length: 5-7 pages, not including title and reference pages