10. What impact do the rating agencies (i.e Moody’s and Standard & Poor’s) have in the financing of the airport?
11. On October 1, 1982, the United bonds were issued at an interest rate of 6.875 percent. Was this an appropriate coupon for the bonds?
12. There are numerous scenarios that can occur once the airport opens. The following questions are “what if” exercises and may not have a right or wrong answer. The questions are used to stimulate classroom discussion. The students must use the prospectus excerpts in the exhibit at the end of the case study. For each situation, what will be the possible outcome and what impact is there upon the bondholders?
13. Assume that DIA finally opens and with a debt of $3 billion. Is the revenue stream sufficient to pay the interest each year and pay the principle at maturity?
14. What options are available to DIA if the coverage falls below 100 percent?
15. Is there additional revenue space available (i.e., unused capacity)
16. What is the function of the project management team (PMT) and why were two companies involved?
17. When did the effectiveness of the project management team begin to be questioned?
18. Did it sound as though the statement of work/specifications provided by the city to the PMT was “vague” for the design phase?
19. Should the PMT be qualified to perform risk analyses?
20. Why were the architects coordinating the changes at the constructions site?
21. Should the PMT have been