Analytical report based on an case study about IT project management Essay

Scientific report dependent on a contextual analysis about IT anticipate the board - Essay Example The arena had its worldwide acknowledgment and with its introduction, it was to have five matches of Euro Championship. The arena was encircled by numerous bigger games complex and alongside its own onlookers. The arena could give monstrous customers and business to eateries and bars. In such manner Casa XXI was contracted for providing food administrations of eatery, bars and of uncommon occasions in the Alvalade arena for the following fifteen years. Casa XXI was the subsequent organization with its three accomplices explicitly made for Alvalade Stadium Complex. Casa XXI had colossal experience of cooking since decades. According to understanding Casa XXI got option to serve 9 roads including Prestige, Corporate Club, Sports 21, Restaurant Casa XXI, Cafeteria, Cafe for representatives, Lodges, Kiosks, Bars and strolling deals people. Overseeing and abusing income from these roads was not easy and neither Casa XXI was all set conventional. In this way, Casa XXI chose to go for anoth er electronic framework which was a significant development. This inventive framework utilized prepaid cards to pay for deals. These prepaid cards had an extraordinary sequential number which was to be recognized by a scanner. The scanner could look at the card status and revive cash to the card. Fascinating viewpoint was its lapse wherein card could be utilized ordinarily. The primary goal of this framework was to dispose of the conventional money framework which was additional tedious. The new inventive framework could serve numerous clients in shorter time thus profitability was relied upon to be improved. The imaginative framework utilized a focal database to spare data everything being equal and deals. In this imaginative framework when a shopper made an installment by the card, the scanners were to follow card holder’s data and cash in the card. After which deal was to occur or the cash could be charged appropriately. The framework was additionally partitioned into two units. First unit was worked by the front office answerable for connecting customers while back office unit was determined for stock administration though data of both framework was recorded on an outer database. Thus, the normal objective of this inventive framework was to make a settled electronic arrangement of installment which could reform the deals at Alvalade Stadium. Casa XXI enormously pitched their creative framework seeking after a grand opening. Redistributing is a typical practice is these days business. Redistributing may occur because of numerous variables. These components might be business, political, specialized or monetary. For this situation, Case XXI comes up short on the aptitude with respect to IT anticipates and frameworks. It has essentially been in food and cooking business and such specialized aptitude is by all accounts remote in the business it works in, With a vital occasion coming up, redistributing the new inventive venture had regard to be a decent c hoice. Redistributing has numerous points of interest. Some of them incorporate access to the necessary skill effectively, more prominent spotlight on center capacities and hazard sharing. Casa XXI have exploited the referenced favorable circumstances to extraordinary degree. It wouldn’t be anything but difficult to gain the aptitude of the IT anticipate effectively and in the event that they chose to each piece of the undertaking themselves they would no uncertainty have endured in their center mastery, providing food. Center disappointments of the framework The imaginative framework was relied upon to carry heaps of profitability to Casa XXI however sadly the initiation conflicted with all expectations and demolished

Managing Financial Resources and Decisions Essay - 1

Overseeing Financial Resources and Decisions - Essay Example Chiefs accept that money advances a superior comprehension among divisions and help them to accomplish corporate system (Shim and Siegel, 2008, p.5-7). There are various apparatuses through which the administration examinations the productivity of their monetary administration methodology. Not many of the generally utilized apparatuses are proportion investigation, spending estimating and breaking down, net future income however NPV. The executives likewise utilizes certain particular devices to decide the gainfulness and the pace of return through instruments like IRR, ROI and benefit record. Any issue existing in the money related strategy followed by the organization can prompt a significant issue in future. Along these lines the budgetary office ought to break down the productivity of these strategies on an intermittent premise and should refresh them to adapt up to changing business sector situation. English Airways is a full assistance giving worldwide carrier that offers low toll courses consistently. The aircraft has a broad system practically everywhere throughout the world and interfaces all the crucial goals. The immense armada size, huge number of global flights and thick systems administration makes British Airways the biggest carrier in UK. At present the organization has it’s headquarter at London Gatwick Airport just as London Heathrow Airport. The carrier administration gave by the organization interfaces in excess of 150 goals through 248 airplanes. Anyway expanded rivalry in carrier industry, change in unrefined petroleum costs and breakdown of the world economy has lead to the bringing down of its traveler base. This ruin is influencing the income just as market picture of the organization. To have a superior comprehension of the proficiency with which BA deals with its fund, an inside and out investigation of the company’s financials was finished. On premise of this examination certain imperative elements identified with the organization are talked about beneath. In the wake of breaking down the yearly income articulation of the

How to Write an APA Paper - Here Are Some Steps That Will Help You

How to Write an APA Paper - Here Are Some Steps That Will Help YouIf you're wondering how to write an APA paper, then this article is for you. By reading this article, you will learn that writing your own APA paper isn't necessarily as hard as it may seem. Furthermore, by writing this article, you will be given a comprehensive guide on how to write an APA paper.The great thing about writing your own APA paper is that the process is completely under your control. Writing your own APA paper allows you to choose exactly what you want to write about, and this is a huge benefit when it comes to studying. You will have complete control over how you go about completing your study, including the way you format your work.When learning how to write an APA paper, the first step is to determine what kinds of questions you are going to need to answer. This may seem like a rather obvious step, but it is often the first step that is overlooked by many students. How to write an APA paper will requir e that you determine what kinds of questions you need to answer, and how you want your answers to look. In addition, it is very important that you know where to start your research, because you will not want to get stuck in a rut.One of the best ways to help you with this problem is to start using various sources that can assist you in your research. If you can, use a reference book such as Harvard's Principles of Psychology, which has an entire chapter dedicated to the topic of psychology. Furthermore, you can get the same information from Wikipedia. Wikipedia offers a huge selection of articles that can be useful in learning how to write an APA paper.The next thing you should do is search online for articles or guides that may be helpful to you and find places where you can look up information. This includes searching through the internet archives, which offers you thousands of articles from past years.For example, if you're working on a research paper on sexism in advertising, th en you might want to look up articles written on sexism in advertising. If you're looking for information on how to write an APA paper on career development, then you should look through the Career Development in the Workplace articles on the wiki. There are many other online sources that you can find to help you with your research.The reason why the above two points are important is because they help you become more knowledgeable in the field of how to write an APA paper. However, if you still need more information, then take advantage of the resources listed here and expand your knowledge!Remember, you're research is the most important part of your APA paper, so make sure that you follow the rules and make sure that you present your findings in the best way possible. With the many benefits of using the many available sources of information online, you'll be amazed at how easy it really is to learn how to write an APA paper.

The Ideal Writing Process Is A Very Generic Way Of Writing

1. The ideal writing process is a very generic way of writing papers. To begin with a topic that fits the requirements of the rubric. After finding a topic start with a prewrite or an outline to help the writer get their thoughts together. Once this is done finding creditable resources that well make the paper stronger and give the writer more creditably. The writer then writes his rough draft that has all the elements that the outline had. Putting in all the recourse and following the format of the paper. Making sure the writer stays on topic though the paper. Once the rough draft is done, then they begin to revise the essay. Having maybe a friend look over it for grammar error. The writer should also read the paper out loud to make sure he or she doesn’t find any mistakes. After this process you have your final draft, the writer to go though it one last time before turning it in for the final time. 2. The real writing process thought in this class is much more detailed and well help finding more errors to correct. Is to begin with what is the theme of the paper or what did the teacher assign. After getting the rubric for the paper, then the writer must find a topic that fits the requirements. When the writer finds a topic, then must began the pre writing stage. Which begins with a DRP followed by research of the topic. Finding creditable resources to make the paper more valid. When the writer has enough information he or she can type up an outline, it is map of how theShow MoreRelatedWhat Produces The Biggest Impact On Learning?1546 Words   |  7 Pagesdevotion could have strong impacts on students learning effectiveness. Learning scientists have been investing their energies to this kind of studies and trying to coordinate variables into an equation which describes students learning in a more precise way. An online learning environment is even more complex than classrooms. This is partially because people are set apart physically and peers interactions are mediated by devices. Therefore, students learning could not be measured by learning outcomesRead MoreEssay1461 Words   |  6 Pagesand visual narratives. Through comparison, this study describes linguistic features of the text framed on the websites of four universities and interpret the factors contributing to the process of identity construction. Each website provides a wealth of textual information that speaks both to the study abroad process and to the individual programs. One of the most overt themes of this discourse is the possibility for students to experience firsthand the diversity and complexity of their destination’sRead MoreStrategic Management and Michael Porter: a Postmodern Reading7507 Words   |  31 Pagespostmodern Porter is revealed. The interview is followed by a number of other radical interpretations of strategic management which could be identified as a ‘critical stream’ within the literature. I conclude the essay with some thoughts about the process and speculate on the possible implications for other academics and practitioners. Will the real ‘strategic management’ please stand up? Any glance through the management literature of the last decade or two shows the prominence of ‘strategic management’Read MoreHemingway s The World War I, Lost Generation, By Ernest Hemingway1460 Words   |  6 Pagesas weak. He makes them seem stupid and ignorant. Literary style and works Many people hold the opinion that there has been no American writer like Ernest Hemingway. A member of the World War I â€Å"lost generation,† Hemingway was in many ways his own best character. Whether as his childhood nickname of â€Å"Champ† or as the older â€Å"Papa,† Ernest Hemingway became a legend of his own lifetime. 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Comparatively, Reid (1993) defined self-reflection as an active process rather than passive thinkingRead MorePersuasive Essay - Original Writing2047 Words   |  9 Pagesrequirement. Significant time, and copious amounts of editing, are commonly dedicated to eradicating continuity errors, thereby producing clear, precise prose. I’m sure you’re all agonisingly familiar with this process. You simply cannot introduce a character with stunning blue eyes, and then, in the very next sentence, describe those same eyes as muddled brown. You certainly can’t flippantly change your character’s name; not if you aspire to be taken seriously, at least. Readers are so attuned to theseRead MoreBasic Guidelines for Successful Planning Process5859 Words   |  24 PagesSuccessful Planning Process | Business Planning -- Recommended Books | Basic Guidelines for Successful Planning Process Basic Guidelines for Successful Planning Process Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008. Adapted from the Field Guide to Nonprofit Strategic Planning and Facilitation and Field Guide to Nonprofit Program Design, Marketing and Evaluation. One of the most common sets of activities in the management is planning. Very simply put, planningRead More Aphra Behn and the Changing Perspectives on Ian Watt’s The Rise of the Novel6049 Words   |  25 Pageschanges which altered a largely agricultural society ruled by a landed aristocracy into a democratic, industrial empire, supported by a vast network of trade and production. In particular The Rise of the Novel placed considerable importance on the way the genre â€Å"altered the centre of gravity sufficiently to place the middle class as a whole in a dominating position for the first time† (Watt, p.48). In the exploration of this Watt championed the Defoe/Richardson/Fielding lineage that continues to

The Theory Of Going Green - 850 Words

Almost everything we see around us, the cloths we wear, the food we eat, the houses we live in, the paper we write on, the vehicles we drive, all need energy to be created or transformed from some natural resource to the final product. There are many ways in which we can reduce the negative impact in which we have on the environment, many of them are low or no cost actions that we can implement on a daily basis. The whole theory of going green is so that we can all put forth an effort to switch to clean renewable energy sources. By purchasing products that can be recycled it show that we are using our money as a voting tool by choosing to do so. Renewable Energy Analysis The first example that comes to mind in renewable energy would be Nuclear power, all the reactors heat water to produce steam, which is then converted into mechanical work or the purpose of generating electricity or propulsion (List Verse, 2009). The second would be Solar Power is something that we are seeing more and more each day, and some communities are starting to embrace the fact that they can offer incentives for residents converting to green energy options. Petroleum is used on a daily basis as well, it’s how most of us enjoy the daily commutes to work and all of the other places we have to travel. The second example would be solar energy which relies solely on the Sun. Mirrors and boilers come to mind when thinking of the complex technologies used to make this happen, on the downside of that,Show MoreRelatedAn Environmentally Friendly Business Is A Main Priority For National And International Businesses944 Words   |  4 Pages‘sustai nability’ used in many businesses these days. A sustainable business is a business that has no negative overall impact on the environment.† Although many businesses have become more â€Å"green† in their marketing and production, it is very rare to find a sustainable business. One example of a business that is going green is the Citi Bike Company. Not only are the bikes used by thousands of New Yorkers every day, but they are reducing the amount of cars on the street, which is eliminating pollution. BusinessesRead MoreDr. Charles. Darwin s Theory Of Evolution1714 Words   |  7 Pagescontributions to the theory of evolution. He stated that all species have descended over time from common ancestors. With his joint publication with Alfred Russell Wallace he introduced the process called natural selection. Darwin published his theory of evolution in 1859 with a book, On the Origin of Species; many people rejected his idea of natural selection and his theory of evo lution. By the 1870’s the scientific community and the public now viewed evolution as a fact. Darwin’s theories and scientificRead MoreGermany Is Better Than Its Neighbors1665 Words   |  7 Pagesevery other country, and talk about how much better and efficient it is, he is simply trying to talk about Germany’s environmental potential and what it effectively did to use it to the maximum capability, and how this effected the country. Being green is not a race or competition, and its not who is winning; it is about who has what resources and what they are doing with them. Of course, throughout the book, Germany is the focus. Uekà ¶tter elaborates a lot on Germany and all of its potential andRead MoreA Reflection On Learning Theories939 Words   |  4 PagesWhen I first started going to college to become a teacher I thought I would just be able to learn the curriculum, write a lesson plan and teach the kids. Simple right? I figured that how to teach was just common sense. I know now I was so wrong. There is so much more that goes into being a teacher. We need to be reflective teachers who are curious about children and how they play, how they learn language, about their temperaments, about their families and home lives. We need to take time toRead MorePerceptions And Perceptions Of Consumer Behavior Essay1467 Words   |  6 PagesIn attitude-behaviour relationships, the Theory of Reasoned Action states that consumer behaviours are constructed by their attitudes, and the attitude itself is the result of the consumers’ perception (Fishbein Ajzen, 1975). With regards to greenwashing, research has found that this attitude-behaviour relationship could manipulate the perception of consumer (see table 2 for perceptions and explanations), for instance, perceived deception (Newell et al., 1998), perceived scepticism (Albayrak etRead MoreThe Soap Is Good For The Environment Essay1414 Words   |  6 Pagesany schemes in New Zealand t hat would allow governments and regulatory sectors to serve the public and advise them on green purchasing in a way that is fair to commercial interests. However, regarding ‘green’ labels, credibility can be judged by looking at the packaging; credentials are typically referred to on packaging and also on the company’s website. This lack of recognized ‘green’ labels provides an opportunity for established brands, for instance Greenpeace to step in and provide more. 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This is why we believe that schools nowadays should in cooperate the idea of â€Å"going green† and bring environmentally friendly ways into their everyday activities. As human development and developmental psychology majors, we feel strongly about helping children grow and develop into the best that they can be. This is why we find it veryRead MoreConsumer Perception Of Consumer Behavior Essay1488 Words   |  6 Pagesconstruct is explored in the Theory of Reasoned Action, where Fishbein and Ajzen (1975) state this in regards to attitude-behaviour relationships. When it comes to greenwashing, research has found that this attitude-behaviour relationship could manipulate the perception of the consumer. The consumer perceptions when it comes to companies can be explained by: perceived deception, which is caused by an organization which misleadingly advertises its product as being ‘green’ (Newell et al., 1998); perceivedRead MoreThe Green Hotel Industry And Its Practices1329 Words   |  6 Pagesof green hotels among tourists within the Hong Kong hospitality industry and its practices. Over the years, efforts to improve environmental conditions as well as social responsibility in the hospitality industry have grown dramatically among individual hotels as well as the entire hotel sector within Hong Kong. Green hotels, also known as environmentally friendly hotels, have become more and more familiar with consumers. The Green Hotels Association really sets the standard of what going green

Combating Social Inequality Poverty - 2261 Words

Combating Social Inequality Social inequality is a global concern impacting not only the poorest nations, but also the most economically advanced nations in the world. More alarming is the amount of separation between the worlds’ wealthiest and the worlds’ poorest inhabitants, with the gap widening year after year. It is estimated that between 17,000 and 22,000 children die each day due to poverty, and more than 1 billion people lack access to clean drinking water. Governments have implemented policies to help bridge the gap of social inequalities between the different races and classes in an attempt to even the playing field, politics and capitalism however have countered and, in some instances, nullified the effectiveness of those policies. Research suggests that addressing education as the root cause of social inequality, in lieu of ineffective policies that only benefit the affluent and social elite, is essential in combating poverty levels, life expectancy, quality of life and overall social well-being. The benefits of attaining higher levels of education are not limited to increased income levels and increased career opportunities. A study conducted in Denmark spanning from 1987 to 2011 concluded that people with tertiary education levels had a considerable life expectancy advantage over their primary and lower secondary education level peers (Brà ¸nnum-Hansen Baadsgaard, 2012), with the gap in life expectancy increasing over the 25 year study. Another study concludedShow MoreRelatedCombat Poverty, Developing And Developed Nations?1247 Words   |  5 Pagesto combat poverty, in developing and developed nations? 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Though, this will not in a sense create income equality however, it would promote additional income and income distribution to lower income households. Through this me thod the standard income requirements to be eligible for the Earned Income

International Bond Markets free essay sample

CHAPTER 12 INTERNATIONAL BOND MARKETS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Describe the differences between foreign bonds and Eurobonds. Also discuss why Eurobonds make up the lion’s share of the international bond market. Answer: The two segments of the international bond market are: foreign bonds and Eurobonds. A foreign bond issue is one offered by a foreign borrower to investors in a national capital market and denominated in that nation’s currency. assignment help blog A Eurobond issue is one denominated in a particular currency, but sold to investors in national capital markets other than the country which issues the denominating currency. Eurobonds make up over 80 percent of the international bond market. The two major reasons for this stem from the fact that the U. S. dollar is the currency most frequently sought in international bond financing. First, Eurodollar bonds can be brought to market more quickly than Yankee bonds because they are not offered to U. We will write a custom essay sample on International Bond Markets or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page S. investors and thus do not have to meet the strict SEC registration requirements. Second, Eurobonds are typically bearer bonds that provide anonymity to the owner and thus allow a means for evading taxes on the interest received. Because of this feature, investors are generally willing to accept a lower yield on Eurodollar bonds in comparison to registered Yankee bonds of comparable terms, where ownership is recorded. For borrowers the lower yield means a lower cost of debt service. 2. Briefly define each of the major types of international bond market instruments, noting their distinguishing characteristics. Answer: The major types of international bond instruments and their distinguishing characteristics are as follows: Straight fixed-rate bond issues have a designated maturity date at which the principal of the bond issue is promised to be repaid. During the life of the bond, fixed coupon payments that are some percentage rate of the face value are paid as interest to the bondholders. This is the major international bond type. Straight fixed-rate Eurobonds are typically bearer bonds and pay coupon interest annually. Floating-rate notes (FRNs) are typically medium-term bonds with their coupon payments indexed to some reference rate. Common reference rates are either three-month or six-month U. S. dollar LIBOR. Coupon payments on FRNs are usually quarterly or semi-annual, and in a accord with the reference rate. A convertible bond issue allows the investor to exchange the bond for a pre-determined number of equity shares of the issuer. The floor value of a convertible bond is its straight fixed-rate bond value. Convertibles usually sell at a premium above the larger of their straight debt value and their conversion value. Additionally, investors are usually willing to accept a lower coupon rate of interest than the comparable straight fixed coupon bond rate because they find the call feature attractive. Bonds with equity warrants can be viewed as a straight fixed-rate bond with the addition of a call option (or warrant) feature. The warrant entitles the bondholder to purchase a certain number of equity shares in the issuer at a pre-stated price over a pre-determined period of time. Zero coupon bonds are sold at a discount from face value and do not pay any coupon interest over their life. At maturity the investor receives the full face value. Another form of zero coupon bonds are stripped bonds. A stripped bond is a zero coupon bond that results from stripping the coupons and principal from a coupon bond. The result is a series of zero coupon bonds represented by the individual coupon and principal payments. A dual-currency bond is a straight fixed-rate bond which is issued in one currency and pays coupon interest in that same currency. At maturity, the principal is repaid in a second currency. Coupon interest is frequently at a higher rate than comparable straight fixed-rate bonds. The amount of the dollar principal repayment at maturity is set at inception; frequently, the amount allows for some appreciation in the exchange rate of the stronger currency. From the investor’s perspective, a dual currency bond includes a long-term forward contract. Composite currency bonds are denominated in a currency basket, such as SDRs or ECUs, instead of a single currency. They are frequently called currency cocktail bonds. They are typically straight fixed-rate bonds. The currency composite is a portfolio of currencies: when some currencies are depreciating others may be appreciating, thus yielding lower variability overall. . Why do most international bonds have high Moody’s or Standard Poor’s credit ratings? Answer: Moody’s Investors Service and Standard Poor’s provide credit ratings on most international bond issues. It has been noted that a disproportionate share of international bonds have high credit ratings. The evidence suggests that a logical reason for this is that the Eurobond market is only accessible to firms that have good credit ratings to begin with. 4. What factors does Standard Poor’s analyze in determining the credit rating it assigns to a sovereign government? Answer: In rating a sovereign government, SP’s analysis centers around an examination of: political risk, income and economic structure, economic growth prospects, fiscal flexibility, general government debt burden, offshore and contingent liabilities, monetary flexibility, external liquidity, public-sector external debt burden, and private-sector debt burden. The rating assigned to a sovereign is particularly important because it usually represents the ceiling for ratings SP will assign to an obligation of an entity domiciled within that country. 5. Discuss the process of bringing a new international bond issue to market. Answer: A borrower desiring to raise funds by issuing Eurobonds to the investing public will contact an investment banker and ask it to serve as lead manager of an underwriting syndicate that will bring the bonds to market. The lead manager will usually invite other banks to form a managing group to help negotiate terms with the borrower, ascertain market conditions, and manage the issuance. The managing group, along with other banks, will serve as underwriters for the issue, i. e. , they will commit their own capital to buy the issue from the borrower at a discount from the issue price. Most of the underwriters, along with other banks, will be part of a selling group that sells the bonds to the investing public. The various members of the underwriting syndicate receive a portion of the spread (usually in the range of 2 to 2. 5 percent of the issue size), depending upon the number and type of functions they perform. The lead manager receives the full spread, and a bank serving as only a member of the selling group receives a smaller portion. 6. You are an investment banker advising a Eurobank about a new international bond offering it is considering. The proceeds are to be used to fund Eurodollar loans to bank clients. What type of bond instrument would you recommend that the bank consider issuing? Why? Answer: Since the Eurobank desires to use the bond proceeds to finance Eurodollar loans, which are floating-rate loans, the investment banker should recommend that the bank issue FRNs, which are a variable rate instrument. Thus there will a correspondence between the interest rate the bank pays for funds and the interest rate it receives from its loans. For example, if the bank frequently makes term loans indexed to 3-month LIBOR, it might want to issue FRNs, also, indexed to 3-month LIBOR. 7. What should a borrower consider before issuing dual-currency bonds? What should an investor consider before investing in dual-currency bonds? Answer: A dual currency bond is a straight fixed-rate bond which is issued in one currency and pays coupon interest in that same currency. At maturity, the principal is repaid in a second currency. Coupon interest is frequently at a higher rate than comparable straight fixed-rate bonds. The amount of the dollar principal repayment at maturity is set at inception; frequently, the amount allows for some appreciation in the exchange rate of the stronger currency. From the investor’s perspective, a dual currency bond includes a long-term forward contract. If the second currency appreciates over the life of the bond, the principal repayment will be worth more than a return of principal in the issuing currency. However, if the payoff currency depreciates, the investor will suffer an exchange rate loss. Dual currency bonds are attractive to MNCs seeking financing in order to establish or expand operations in the country issuing the payoff currency. During the early years, the coupon payments can be made by the parent firm in the issuing currency. At maturity, the MNC anticipates the principal to be repaid from profits earned by the subsidiary. The MNC may suffer an exchange rate loss if the subsidiary is unable to repay the principal and the payoff currency has appreciated relative to the issuing currency. Consequently, both the borrower and the investor are exposed to exchange rate uncertainty from a dual currency bond. PROBLEMS: 1. Your firm has just issued five-year floating-rate notes indexed to six-month U. S. dollar LIBOR plus 1/4%. What is the amount of the first coupon payment your firm will pay per U. S. $1,000 of face value, if six-month LIBOR is currently 7. 2%? Solution: 0. 5 x (. 072 + . 0025) x $1,000 = $37. 25. 2. The discussion of zero-coupon bonds in the text gave an example of two zero-coupon bonds issued by Commerzbank. The DM300,000,000 issue due in 1995 sold at 50 percent of face value, and the DM300,000,000 due in 2000 sold at 33 1/3 percent of face value; both were issued in 1985. Calculate the implied yield to maturity of each of these two zero-coupon bond issues. Solution: The bonds due in 1995 sold at 50% percent of face value. Since they were issued in 1985, they had a ten year maturity. Assuming a DM1,000 par value, their yield-to-maturity is: (DM1,000/DM500)1/10 1 = . 07177 or 7. 177% per annum. The bonds due in year 2000 sold at 33 1/3%. They have a 15 year maturity. Their yield-to-maturity is: (DM1,000/DM333. 33)1/15 1 =. 07599 or 7. 599% per annum. 3. Consider 8. 5 percent Swiss franc/U. S. dollar dual-currency bonds that pay $666. 67 at maturity per SF1,000 of par value. What is the implicit SF/$ exchange rate at maturity? Will the investor be better or worse off at maturity if the actual SF/$ exchange rate is SF1. 5/$1. 00? Solution: Implicitly, the dual currency bonds call for the exchange of SF1,000 of face value for $666. 67. Therefore, the implicit exchange rate built into the dual currency bond issue is SF1,000/$666. 67, or SF1. 50/$1. 00. If the exchange rate at maturity is SF1. 35/$1. 00, SF1,000 would buy $740. 74 = SF1,000/SF1. 35. Thus, the dual currency bond investor is worse off with $ 666. 67 because the dollar is at a depreciated level in comparison to the implicit exchange rate of SF1. 50/$1. 00. MINI CASE: SARA LEE CORPORATION’S EUROBONDS Sara Lee Corp. s serving up a brand name and a shorter maturity than other recent corporate borrowers to entice buyers to its first-ever dollar Eurobonds. The U. S. maker of consumer products, from Sara Lee cheesecake to Hanes pantyhose and Hillshire Farm meats, is selling $100 million in bonds with a 6 percent coupon. These are three-year bonds; other corporate bond sellers including Coca-Cola Co. , Unilever NV, and Wal-Mart Stores, Inc. , have concentrated on its five-year maturities. â€Å"It is a well-known name and it is bringing paper to a part of the maturity curve where there is not much there,† said Noel Dunn of Goldman Sachs International. Goldman Sachs expects to find most buyers in the Swiss retail market, where â€Å"high-quality American corporate paper is their favorite buy,† Dunn said. These are the first bonds out of a $500 million Eurobond program that Sara Lee announced in August 1995, and the proceeds will be used for general corporate purposes, said Jeffery Smith, a spokesman for the company. The bond is fairly priced, according to Bloomberg Fair Value analysis, which compared a bond with similar issues available in the market. The bond offers investors a yield of 5. 881 percent annually or 5. 797 percent semiannually. That is 22 basis points more than they can get on the benchmark five-year U. S. Treasury note. BFV analysis calculates that the bond is worth $100,145 on a $100,000 bond, compared with the re-offer price of $100,320. Anything within a $500 range on a $100,000 bond more or less than its BFV price is deemed fairly priced. Sara Lee is rated â€Å"AA-† by Standard Poor’s Corp. and â€Å"A1,† one notch lower, by Moody’s Investors Service. In July 1994, Sara Lee’s Netherlands division sold 200 million Dutch guilders ($127 million) of three-year bonds at 35 basis points over comparable Netherlands government bonds. In January, its Australian division sold 51 million British pounds ($78 million) of bonds maturing in 2004, to yield 9. 43 percent. What thoughts do you have about Sara Lee’s debt-financing strategy? Suggested Solution to Sara Lee Corp. ’s Eurobonds Sara Lee is the ideal candidate to issue Eurobonds. The company has worldwide name recognition, and it has an excellent credit rating that allows it to place new bond issues easily. By issuing dollar denominated Eurobonds to Swiss investors, Sara Lee can bring new issues to market much more quickly than if it sold domestic dollar denominated bonds. Moreover, the Eurodollar bonds likely sell at a lower yield than comparable domestic bonds. Additionally, it appears as if Sara Lee is raising funds in a variety of foreign currencies. Sara Lee most likely has large cash inflows in these same currencies that can be used to meet the debt service obligations on these bond issues. Thus Sara Lee is finding a use for some of its foreign currency receipts and does not have to be concerned with the exchange rate uncertainty of these part of its foreign cash inflows.