Your company is facing a cash flow crisis. You must raise $10 million to fund a critical project. Make informed decisions about bond types, covenants, and adapt to unpredictable cash flow scenarios!
How to Play
Scenario: You are the CFO of a mid-sized company planning to raise $10 million. Decide between issuing short-term bonds (3 years) or long-term bonds (10 years). Factors to consider:
Interest Rates: Short-term bonds have lower rates but refinancing risk. Long-term bonds have higher rates but offer stability.
Yield Curve: Analyze whether it is upward-sloping, flat, or inverted to make the best choice.
Cash Flow Stability: Determine if your company can handle short-term repayment pressure or needs long-term flexibility.
Bond Covenants: Choose between strict or flexible covenants based on risk and investor attractiveness.