The case is designed to introduce the concept of a risk premium and to accomplish the following potential additional teaching objectives: 1) Motivate the concept of a risk premium and the notion of a cost of debt by exposing students to estimating default risk, credit ratings, and credit spreads. 2) Review yield curve principles and mechanics. 3) Practice bond math and credit market terminology. 4) Establish institutional detail for the public security offering process. 5) Introduce the risk-return paradigm in finance.