Analyzing Debt Terms, Yields, Prices, and Credit Ratings Reproduced below is the debt footnote from the May 31, 2019, 10-K report of Oracle Corporation.

$ millions	May 31, 2019	May 31, 2018
Fixed-rate senior notes:
$1,500, 2.375%, due January 2019		1,500
$1,750, 5.00%, due July 2019	1,750	1,750
$2,000, 2.25%, due October 2019	2,000	2,000
$1,000, 3.875%, due July 2020	1,000	1,000
1,250, 2.25%, due January 2021	1,393	1,446
$1,500, 2.80%, due July 2021	1,500	1,500
$4,250, 1.90%, due September 2021	4,250	4,250
$2,500, 2.50%, due May 2022	2,500	2,500
$2,500, 2.50%, due October 2022	2,500	2,500
$1,250, 2.625%, due February 2023	1,250	1,250
$1,000, 3.625%, due July 2023	1,000	1,000
$2,500, 2.40%, due September 2023	2,500	2,500
$2,000, 3.40%, due July 2024	2,000	2,000
$2,000, 2.95%, due November 2024	2,000	2,000
$2,500, 2.95%, due May 2025	2,500	2,500
750, 3.125%, due July 2025	836	868
$3,000, 2.65%, due July 2026	3,000	3,000
$2,750, 3.25%, due November 2027	2,750	2,750
$500, 3.25%, due May 2030	500	500
$1,750, 4.30%, due July 2034	1,750	1,750
$1,250, 3.90%, due May 2035	1,250	1,250
$1,250, 3.85%, due July 2036	1,250	1,250
$1,750, 3.80%, due November 2037	1,750	1,750
$1,250, 6.50%, due April 2038	1,250	1,250
$1,250, 6.125%, due July 2039	1,250	1,250
$2,250, 5.375%, due July 2040	2,250	2,250
$1,000, 4.50%, due July 2044	1,000	1,000
$2,000, 4.125%, due May 2045	2,000	2,000
$3,000, 4.00%, due July 2046	3,000	3,000
$2,250, 4.00%, due November 2047	2,250	2,250
$1,250, 4.375%, due May 2055	1,250	1,250
Floating-rate senior notes:
$500, three-month LIBOR plus 0.58%, due January 2019		500
$750, three-month LIBOR plus 0.51%, due October 2019	750	750
Revolving credit agreements and other borrowings:
$2,500, LIBOR plus 0.50%, due June 2018		2,500
Other borrowings due August 2025	113	113
Total senior notes and other borrowings	56,342	60,927
Unamortized discount/issuance costs	(202)	(282)
Hedge accounting fair value adjustments(1)(4)	27	(26)
Total notes payable and other borrowings	56,167	60,619
Notes payable and other borrowings, current	4,494	4,491
Notes payable and other borrowings, noncurrent	$51,673	$56,128

Future principal payments (adjusted for the effects of the cross-currency swap agreements associated with the January 2021 Notes and July 2025 Notes) for all of our borrowings at May 31, 2019, were as follows:

$ millions
Fiscal 2020	$4,500
Fiscal 2021	2,631
Fiscal 2022	8,250
Fiscal 2023	3,750
Fiscal 2024	3,500
Thereafter	33,984
Total	$56,615

Reproduced below is a summary of the market values as of August 10, 2019, of select Oracle bonds. Source: Markets Insider (https://markets.businessinsider.com/bonds).

Maturity Date	Amount $	Price	Coupon %	Yield to Maturity %
July 2020	$1,000	109.47	3.875	2.613
April 2038	$1,250	136.78	6.5	3.36
July 2039	$1,250	120.47	6.125	3.45

(a) What is the amount of debt reported on Oracles May 31, 2019, balance sheet? $Answer

million What are the scheduled maturities for this indebtedness?

2020	Answer	million
2021	Answer	million
2022	Answer	million
2023	Answer	million
2024	Answer	million
Thereafter	Answer	million

(d) Oracles $1,250 million 6.5% notes traded at 136.78 as of August 10, 2019. What is the market value of these notes on that date? (Round your answer to the nearest whole number.)

(e) How is the difference between this market value and the $1,250 million face value reflected in Oracles financial statements?

a - The balance sheet is unaffected, but the income statement reflects increases (decreases) in interest rates as increases (decreases) in interest expense.

b - The current market value of the notes is reflected in the balance sheet as an increase (decrease) in liabilities if rates have declined (increased).

c - Only the statement of cash flows is affected as cash is needed to retire the liabilities when they mature.

d - The current market value of the notes is not reflected in Oracle's balance sheet.

(f) What does the 136.78 price tell you about the general trend in interest rates since Oracle sold this bond issue?

a- The price of the bonds is unrelated to the general level of interest rates, only the rate of interest on Oracle's debt. Because that hasn't changed, other causes must be considered.

b - Because these notes have increased in value subsequent to their issuance, market interest rates must have decreased.

c - The market price of the debt relates only to investor's expectations about the general condition of the airline industry and is unaffected by the level of interest rates.

d - Because these notes have declined in value subsequent to their issuance, market interest rates must have increased.