Publicly traded company

 

Choose a publicly traded company (Target) that issues bonds. You can locate this information by reviewing your chosen company’s annual report online. A good place to start is the Annual Reports website. Target is the chosen company
In your case study, discuss the following aspects of the company.
1. Provide a brief introduction of the company, including its name, headquarters, products/services offered, and approximate net worth.
2. What are the key features of one of the bonds issued by your chosen company? Discuss how the bond’s terms and collateral can affect the bond’s interest rate.
3. How would a potential investor determine the value and risk of the bond?
4. Explain the concept of the time value of money (TVM) as it applies to the company’s bond offerings.

Sample Solution

Target is an American retail corporation headquartered in Minneapolis, Minnesota. The company operates a chain of discount department stores, hypermarkets and superstores throughout the United States, as well as internationally in Canada and Mexico. As of December 2020, Target has over 1,860 stores located across the U.S., offering products such as clothing, beauty products, toys and home furnishings for customers to purchase both online or in-store (“About Target Corporation”). With its strong brand recognition and impressive sales figures – the business reported 2019 revenue of $77 billion (“Company Overview: Target Corporation”) – it is no surprise that Target holds a net worth in excess of $47 billion (Forbes).

Target issues various types of debt securities including both fixed rate bonds and floating rate notes to raise capital for their operations. The most prominent example being their 3% Senior Fixed Rate Notes due 2030; these notes were first issued by Target back in August 2020 with coupon payments due semi-annually on February 15th and August 15th every year until maturity date on August 15th 2030 (CUSIP 87612EAB7). Additionally, the company also offers Floating Rate Senior Unsecured Notes; these have been issued since October 2018 with coupon payments adjusted daily according to changes in London Interbank Offered Rates (LIBOR), plus a set spread determined when they are initially sold to investors. In this case however all payments are made quarterly on February 1st May 1st August 1st & November 1st every year until maturity date which was extended from January 2029 to July 2031 following an amendment announcement earlier this month (CUSIP 87612EAJ3).

At present the 3% Senior Fixed Rate Notes hold an approximate market value around $100 per note whereas the Floating Rate Senior Unsecured Notes currently trade at around $99 per note – according to Fidelity’s Bond Pricing Database which tracks real-time pricing information from various sources including Bloomberg & MarketAxess among others. As far as yields go; after accounting for their respective coupon rates & current market values – analysts estimate that investing in either one will yield approximately 4%; further more given that LIBOR rates could fluctuate over time – investors can expect similar returns over longer periods too should they choose to invest accordingly (Fidelity Investments).

First, it is never just to intentionally kill innocent people in wars, supported by Vittola’s first proposition. This is widely accepted as ‘all people have a right not to be killed’ and if a soldier does, they have violated that right and lost their right. This is further supported by “non-combatant immunity” (Frowe (2011), Page 151), which leads to the question of combatant qualification mentioned later in the essay. This is corroborated by the bombing of Nagasaki and Hiroshima, ending the Second World War, where millions were intently killed, just to secure the aim of war. However, sometimes civilians are accidentally killed through wars to achieve their goal of peace and security. This is supported by Vittola, who implies proportionality again to justify action: ‘care must be taken where evil doesn’t outweigh the possible benefits (Begby et al (2006b), Page 325).’ This is further supported by Frowe who explains it is lawful to unintentionally kill, whenever the combatant has full knowledge of his actions and seeks to complete his aim, but it would come at a cost. However, this does not hide the fact the unintended still killed innocent people, showing immorality in their actions. Thus, it depends again on proportionality as Thomson argues (Frowe (2011), Page 141).
This leads to question of what qualifies to be a combatant, and whether it is lawful to kill each other as combatants. Combatants are people who are involved directly or indirectly with the war and it is lawful to kill ‘to shelter the innocent from harm…punish evildoers (Begby et al (2006b), Page 290).However, as mentioned above civilian cannot be harmed, showing combatants as the only legitimate targets, another condition of jus in bello, as ‘we may not use the sword against those who have not harmed us (Begby et al (2006b), Page 314).’ In addition, Frowe suggested combatants must be identified as combatants, to avoid the presence of guerrilla warfare which can end up in a higher death count, for example, the Vietnam War. Moreover, he argued they must be part of the army, bear arms and apply to the rules of jus in bello. (Frowe (2011), Page 101-3). This suggests Frowe seeks a fair, just war between two participants avoiding non-combatant deaths, but wouldn’t this lead to higher death rate for combatants, as both sides have relatively equal chance to win since both use similar tactics? Nevertheless, arguably Frowe will argue that combatant can lawfully kill each other, showing this is just, which is also supported by Vittola, who states: ‘it is lawful to draw the sword and use it against malefactors (Begby et al (2006b), Page 309).’
In addition, Vittola expresses the extent of military tactics used, but never reaches a conclusion whether it’s lawful or not to proceed these actions, as he constantly found a middle ground, where it can be lawful to do such things but never always (Begby et al (2006b), Page 326-31). This is supported by Frowe, who measures the legitimate tactics according to proportionality and military necessity. It depends on the magnitude of how much damage done to one another, in order to judge the actions after a war. For example, one cannot simply nuke the terrorist groups throughout the middle-east, because it is not only proportional, it will damage the whole population, an unintended consequence. More importantly, the soldiers must

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