Response to the following questions:
1. How can an issuer protect against an adverse change in the spread when it expects to issue bonds in the future?
2. Suppose that the Dante Company borrows $10 million via a term loan. The loan matures in three years and has a fixed interest rate of 10%. The loan is a fully amortizing loan and the payments are made quarterly.
a. What is the amount of the quarterly loan payment?
b. Construct an amortization schedule for this loan.