A company issued $1 billion of long-term bonds 19 years ago

The coupon rate of 7.55%.

The bonds will mature in 11 years.

The bonds are currently selling for $1,363.8

What is the cost of long term debt?

COSTCO BALANCE SHEET As of January 31 ($Millions) 2019 2018 ASSETS Current Assets: Cash and Equivalents Accounts Receivable Inventory Prepaid Expenses Total Current Assets 7,722 6,283 44,269 3,623 61,897 6,756 5,614 43,783 3,511 59,664 Net Property, Plant, and Equipment Goodwill Other Long-Term Assets Total Assets 111,395 31,181 14,822 219.295 114,818 18,242 11,798 204.522 LIABILITIES Current Liabilities: Accounts Payable Accrued Liabilities Short-Term Borrowings Current Portion of Long-Term Debt & Capital Leases Other Current Liabilities Total Current Liabilities 47,060 22,159 5,225 2,605 428 77,477 46,092 22,122 5,257 4,405 645 78,521 Long-Term Debt and Capital Leases Deferred Income Taxes and Other Total Liabilities 50,203 11,981 139,661 36,825 8,354 123,700 EQUITY Common Stock and Paid-In Capital Retained Eamings Other Comprehensive Income (Loss) Total Common Equity Non-Controlling Interest Total Equity 3,253 80,785 (11,542) 72,496 7,138 79,634 2,943 85,107 (10,181) 77,869 2,953 80,822 Total Liabilities and Equity 219.295 204.522