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Analyse all the risks involved with investing into a bond offering of a Essent Group Ltd company


Analyse all the risks involved with investing into a bond offering of a Essent Group Ltd  company. 

Your task is to quantify the risk premium for the company by finding the interest rate spread over an appropriate interest rate curve. The interest rates for different maturities are usually not the same and corporate bonds are usually priced with an appropriate spread over a benchmark interest rate curve, which represents the risk-free rate. You should select a proper benchmark over which to find the spread for your chosen company. Essentially you are trying to quantify the risk premium of investing into this particular company over the benchmark rates. Keep in mind that your spread should be given in basis points over the benchmark curve. Try to break down the spread into its component risk factors as much as possible. In your report, you should discuss the spread and its component risk factors as well as suggesting enhancements or modifications in reference to a plain vanilla bond offering. After calculating the spread, suggest a bond offering with a maturity date, notional amount, and coupon rate. The company has indicated that they want to issue bonds with prices close to par as possible. The maturity for the proposed bond offering cannot be the same as the maturity of any of the company's existing bonds, nor can it be closer than six months in maturity to any bonds it currently has circulating in the market. You should show your work and calculation in an Excel spreadsheet.  

To get the latest prices of the current bonds of publicly listed companies, go to the following link: https://finra-markets.morningstar.com/BondCenter/Default.jsp



Dear John ease help me to tackle this questions. i really appreciate your service. Help me please for one time!!
Shax11 (rep: 1) Mar 16, '21 at 5:40 am
Please don't double-post, I promise the first one, this one, was seen. If you would like help with this, then ask for specific targeted help about concepts that you do not understand as you try to work through the problem. As John mentioned, this is not a homework factory. We love to help, not do your work ;)

(Also, if your other question was slightly different, sorry for deleting it, but dude, the title was "Excel help" and they looked exactly the same to my tired brain.)
don (rep: 1989) Mar 16, '21 at 10:06 am
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Hi Shax and welcome to the Forum

This (and your similar question) feel like schoolwork. I'll be guided by the more-experienced contributors but I believe that our approach is not to do schoolwork, homework or exams for users.

The question suggests that you must have reasonable competency in Excel already but you may need some help with web import. Suggest you look in the Excel Tutorials section of the site- you may find this non-macro method Easy Excel Web Import useful and there are VBA-based solutions too.

Good luck.




Suggest you deselect my Answer- I should get no credit for not helping!

You're studying this subject (but I'm not) so I can't really help / don't know the investment risks you are meant to show knowledge of.

Perhaps someone else can/will help but good luck anyway.
John_Ru (rep: 5147) Mar 16, '21 at 6:15 am
And yes, vote for you! The last thing I think anyone wants is to actually complete someone's homework for them lol.
don (rep: 1989) Mar 16, '21 at 10:08 am
Thanks Don. Remind me please, do the Rules already warn against posting school work questions? 
John_Ru (rep: 5147) Mar 16, '21 at 10:14 am
It doesn't seem like they do, but direct school work questions like this have NEVER been tolerated. I just commented on his other post, now realizing how annoying his questions are, but he will be banned if he doesn't shape up - sounds harsh, but my coffee didn't kick-in yet haha. 

I am sure tons of people need help with their work/homework, most don't use Excel just for fun, but at least most don't try to give orders or copy/paste entire questions lol.

For the rules, no one reads them, so I'm not sure if updating them will matter, but I will make a note about this because I think it would be nice to just be able to say "it's against the rules" or something like that.
don (rep: 1989) Mar 16, '21 at 10:21 am
I'm sure you're right but a mention in the Rules would making rejecting such questions a little easier when we detect them. 
John_Ru (rep: 5147) Mar 16, '21 at 10:30 am
I agree! I've made a note about it and will get to it soon I hope. I think I will also move the Rules section to its own page as well, so I won't be able to update that immediately.
don (rep: 1989) Mar 16, '21 at 12:34 pm
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