Analyzing Debt Terms, Yields, Prices, and Credit Ratings Assume Reproduced below is the long-term debt footnote...

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Analyzing Debt Terms, Yields, Prices, and Credit Ratings Assume Reproduced below is the long-term debt footnote from the 10-K report of Southwest Airlines. Long-Term Debt (in millions) 2012 2011 77/8% Notes due 2012 $ -- $ 100 French Credit Agreements due 2017 35 37 6 1/2% Notes due 2017 385 369 5 1/4% Notes due 2019 350 336 5 3/4% Notes due 2021 300 300 5 1/8% Notes due 2022 311 300 French Credit Agreements due 2022 94 100 Pass Through Certificates 480 73/8% Debentures due 2032 103* 100 Capital leases 52 63 2,110 1,705 Less current maturities 42 22 Less debt discount and issuant costs 19 122 16 $2,049 $1,567 * The carrying value of these debentures is 103 while the face value is 100. The company marks these debentures to market each period because the debentures are hedged with interest-rate swaps. The swap and the debentures are both marked to market, where any gains and losses offset each other. Analyzing Debt Terms, Yields, Prices, and Credit Ratings Assume Reproduced below is the long-term debt footnote from the 10-K report of Southwest Airlines. Long-Term Debt (in millions) 2012 2011 77/8% Notes due 2012 $ -- $ 100 French Credit Agreements due 2017 35 37 6 1/2% Notes due 2017 385 369 5 1/4% Notes due 2019 350 336 5 3/4% Notes due 2021 300 300 5 1/8% Notes due 2022 311 300 French Credit Agreements due 2022 94 100 Pass Through Certificates 480 73/8% Debentures due 2032 103* 100 Capital leases 52 63 2,110 1,705 Less current maturities 42 22 Less debt discount and issuant costs 19 122 16 $2,049 $1,567 * The carrying value of these debentures is 103 while the face value is 100. The company marks these debentures to market each period because the debentures are hedged with interest-rate swaps. The swap and the debentures are both marked to market, where any gains and losses offset each other.