Professional challenge

Robert Mondavi Company is using bonds to collect capital for its new developments. Robert Mondavi was issuing bonds many times in different quantities and every issue has different coupon rate, only some of them are callable as well as different issues have different maturities. To demonstrate how bond refunding can works and how company can save money and improve its cash flow I used assumptions provided in our instructions and I also accepted that Robert …

…some more return if we decide to wait. Today interest rates are already so low that I would not expect any more major cuts and I would recommend refunding the old bonds. I am even afraid that it could be a little too late and the company already might not get the most from this project. Under today's conditions I would make decision about refinancing and I thing that RMC should not wait any longer.