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You are required to come up with a bond portfolio for offer to the market (UOB Structured Note – attached). The assignment should cover the topics below :
1) An introduction and description of a bond issue that is listed on SGX; included but not limited to its coupon rate, term to maturity and coupon payment frequency. (10 Marks)
2) Describe the characteristics of the likely investors of the above mentioned bond (10 Marks)
3) Narrate on the details of the bonds; especially with regards to the following:
a) Covenants (10 Marks)
b) Embedded options (10 Marks)
c) Self declared investment related risk as found indentures; specifically comment on their likelihood of occurring (20 Marks)
a) Covenants (10 Marks)
b) Embedded options (10 Marks)
c) Self declared investment related risk as found indentures; specifically comment on their likelihood of occurring (20 Marks)
4) Gauge the risk profile of the bond issue; students to explain in detail on the risk profile and may give examples from other bond issues in the market. (30 Marks)
5) Suggest what initiatives which can be implemented to lower the risk exposure when investing in the bond issue
