FIN385 Course ProjectObjective:Students should familiarize themselves with bonds and/or preferred stock as an investment opportunity and as a source of funds. In this assignment students will determine why a fixed income security may be offered by a firm, what features it must have in order to be attractive to investors, and what kind of financial results were achieved as a result. Balance sheet accounts as well as certain ratios are to be analyzed.Guidelines:• Papers should be 10 to 20 pages in length, 10 point font, doublespaced, including a cover page, table of contents, introduction, body of the report, summary or conclusion, and works cited. • Even though this is not a scientifictype writing assignment, and is mostly creative in nature, references are still very important. At least 6 authoritative, outside references are required (anonymous authors or web pages are not acceptable). These should be listed on the last page titled “Works Cited”. • Appropriate citations are required. • All DeVry University policies are in effect including the plagiarism policy. • Papers are due during Week 7 of this course. • Any questions about this paper may be discussed in the weekly Q&A Discussion topic. • This paper is worth 170 total points and will be graded on quality of research topic, quality of paper information, use of citations, grammar and sentence structure. A separate “Grading Rubric” is available in Doc Sharing. Students should pick a company which has issued bonds in the last 3 years so that the internet can provide sufficient financial data for analysis. The report is due by the end of week 7, in the Drop Box. qattachments_19a33eb616534d4aa14d0da1415219f0eaf39453 Page 1 Course ProjectBy the end of week one post in the Journal [a] your company choice [b] the security offered; and [c] when that security was issued. It’s suggested you work on at least one of each of the remaining sections each week.The final report is made up of seven sections as follows. Each section should be approximately one page EXCLUDING charts, graphs, etc. IMPORTANT When preparing your report, separate the sections with headings as is done here in this guide.MilestonesI Week 1 Company background (15 pts.)This section should include what industry the firm is in, its products, competitors, and the stated main reason for needing capital [to fund receivables, capacity expansion, retire older debt, etc.]II Week 2 Balance Sheets (20 pts.)What the balance sheet looked like in the quarter just PRIOR to issuing the bonds; include both a copy from before the issue and AFTER the issue. Calculate AT LEAST 5 of the ratios shown in the Moody’s Bond Rating Chart contained in Lecture Week 2, both BEFORE, and AFTER the bonds were issued, and discuss why you think they are important to your report. III Week 3 Trends in YTM and Price (20 pts.)At what price and YTM was the initial offering sold. Tabulate the price and YTM of the issue at the end of each calendar quarter for the last six quarters. Then plot the tabulated values to visualize the trends in YTM and prices..IV Week 4 Purpose of the Offering and Leverage (20 pts.) qattachments_19a33eb616534d4aa14d0da1415219f0eaf39453 Page 2 Course ProjectWhat was the planned use of the funds raised? If you can’t find a specific discussion about that, then use your judgment as to why you think the funds were needed and explain your reasoning. Calculate the financial leverage before and after the offering. V Week 5 Credit Rating (20 pts.)What credit rating have the bonds been given by the bond credit rating services? Research the criteria each agency uses to determine the rating. Why (or why not) do you think that recent financial statements justify the rating? VI Week 5 Rate of Return (30 pts.)If you were one of the original investors in this issue, and you had invested $10,000, […]