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WorldCom, Inc.: Corporate Bond Issuance

Chaplinsky, Susan

Case

WorldCom, Inc.: Corporate Bond Issuance

Chaplinsky, Susan

F-1237 | Published November 1, 1998 | 14 pages Case

Collection: Darden School of Business

Product Details

This case invites students to estimate the costs of a new debt issue. Designed as an introductory case for use early on in an MBA course, it requires students to compute the yield-to-maturity on the WorldCom bonds from price data and from spreads over Treasury securities for bond-rating categories. The exercise allows for discussion of benchmarking in the context of credit markets.

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