Financing S S Airs Expansion Plans with a Bond Issue

  1. Using a Word document, complete
    the requirements of the Mini-case “Financing S & S Air’s Expansion
    Plans with a Bond Issue” on page 238 in the textbook in the form of a
    memo, as explained in the case.
    1. For each of the ten bond
      features listed, briefly describe the likely impact of each of the
      features on the coupon rate demanded by potential bond investors when
      this new bond is issued. Will it cause the necessary coupon rate to
      be higher or lower?

In addition, for each of

the ten bond features listed, briefly describe the advantages or disadvantages,

from the company’s perspective, of implementing that feature with the newly

issued bond