Question
Analyzing Debt Terms, Yields, Prices, and Credit Ratings Reproduced below is the debt footnote from the 2013 10-K report of Dell Inc. Long-Term Debt (in
Analyzing Debt Terms, Yields, Prices, and Credit Ratings Reproduced below is the debt footnote from the 2013 10-K report of Dell Inc.
Long-Term Debt (in millions) | February 1, 2013 | February 3, 2012 |
---|---|---|
Senior Notes | ||
$400 million issued on June 10, 2009, at 3.375% due June 2012 (2012 Notes) | $ | $ 400 |
$600 million issued on April 17, 2008, at 4.70% due April 2013 (2013A Notes) | 601 | 605 |
$500 million issued on September 7, 2010, at 1.40% due September 2013 | 500 | 499 |
$500 million issued on April 1, 2009, at 5.625% due April 2014(b) | 500 | 500 |
$300 million issued on March 28, 2011, with a floating rate due April 2014 (2014B Notes) | 300 | 300 |
$400 million issued on March 28, 2011, at 2.10% due April 2014 | 400 | 400 |
$700 million issued on September 7, 2010, at 2.30% due September 2015(b) | 702 | 701 |
$400 million issued on March 28, 2011, at 3.10% due April 2016(b) | 402 | 401 |
$500 million issued on April 17, 2008, at 5.65% due April 2018(b) | 502 | 501 |
$600 million issued on June 10, 2009, at 5.875% due June 2019(b) | 604 | 602 |
$400 million issued on March 28, 2011, at 4.625% due April 2021 | 398 | 398 |
$400 million issued on April 17, 2008, at 6.50% due April 2038 | 400 | 400 |
$300 million issued on September 7, 2010, at 5.40% due September 2040 | 300 | 300 |
Senior Debentures | ||
$300 million issued on April 3, 1998, at 7.10% due April 2028 (Senior Debentures)(a) | 379 | 384 |
Other | ||
Long-term structured financing debt | 872 | 920 |
Less: current portion of long-term debt | (1,618) | (924) |
Total long-term debt | 5,242* | 6,387 |
Short-Term Debt | ||
Commercial paper | 1,807 | 1,500 |
Short-term structured financing debt | 416 | 440 |
Current portion of long-term debt | 1,618 | 924 |
Other | 2 | 3 |
Total short-term debt | 3,843 | 2,867 |
Total debt | $ 9,085 | $ 9,254 |
*Reflects carrying value (net book value) of debt. Aggregate future maturities of long-term debt at face value were as follows at February 1, 2013:
Maturities by Fiscal Year | |||||||
---|---|---|---|---|---|---|---|
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total |
Aggregate future maturities | |||||||
of long-term debt outstanding | $ 1,617 | $ 1,465 | $ 790 | $ 400 | $ -- | $ 2,500 | $ 6,722** |
**Reflects face value of debt. Reproduced below is a summary of the market values as of November 2013 of the Dell bonds maturing from 2021 to 2040 (from Morningstar, quicktake.morningstar.com).
Name | Maturity Date | Amount $ | Price | Coupon % | Yield to Maturity % |
---|---|---|---|---|---|
Dell 5.4% | 9/10/2040 | 300 | 69.50 | 5.4 | 8.24 |
Dell 6.5% | 4/15/2038 | 400 | 77.30 | 6.5 | 8.77 |
Dell 4.625% | 4/1/2021 | 400 | 91.50 | 4.625 | 6.07 |
(a) What is the amount of long-term debt reported on Dell's February 1, 2013 balance sheet? $_________ million What are the scheduled maturities for this indebtedness?
2014 | $______ | million |
2015 | $______ | million |
2016 | $______ | million |
2017 | $ ______ | million |
2018 | $______ | million |
thereafter | $______ | million |
Dells $300 million 5.4% notes traded at 69.5 or 69.5% of par, as of November 2013. What is the market value of these notes on that date? (Round your answer to one decimal place.)
$_______ million
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