CVS Health Corp. discloses the following footnote in its 10-K relating to its debt: Following is a summary of the Company's borrowings as reported in note 5 to the firm's 10-K.

CVS also discloses that its interest expense was $1.04 billion in 2017, after deducting capitalized interest of $8 million. It paid interest of $1.07 billion.

REQUIRED:

a. What was the average interest rate on CVS debt in 2018?

b. Does your computation in part a seem reasonable given the disclosure relating to specific bond issues? Explain.

c. Why can the amount of interest paid be different from the amount of interest expense recorded in the income statement?

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In millions 2017 2016 $ 1,276 2,250 1,250 $ 1,874 2,250 1,250 Commercial paper 1.9% senior notes due 2018. 2.25% senior notes due 2018. ... 2.25% senior notes due 2019. 850 850 2.8% senior notes due 2020. 2,750 2,750 2.125% senior notes due 2021, 1,750 1,750 4.125% senior notes due 2021. 550 550 1,250 1,500 399 1.250 2.75% senior notes due 2022. 1,250 1,500 3.5% senior notes due 2022. 4.75% senior notes due 2022. 399 4% senior notes due 2023. 1,250 3.375% senior notes due 2024. 650 650 5% senior notes due 2024. 299 299 2,828 1,750 372 3.875% senior notes due 2025. 2,828 2.875% senior nctes due 2026. 1,750 372 6.25% senior notes due 2027.. 3.25% senior exchange debentures due 2035. 1 1 4.875% senior notes due 2035. 652 652 5.125% senior notes due 2039. 477 477