You have won the mandate and severn trent plc has asked you


You have won the mandate and Severn Trent PLC has asked you price a 5 year GBP parbullet bond issue for them, with Price, Coupon, Yield to Maturity and Modified Duration.

You have the following set of UK Treasury bond data (March 2013) and consultations with your Bank's Equity Analyst and Debt Analyst suggest that ayield of 2.47% incorporating a Z-spread for Severn Trent PLC of 150 bps over Treasury would be appropriate to attract investors.

 

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Finance Basics: You have won the mandate and severn trent plc has asked you
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