Assume that you are the lead financial analyst for Target Corporation's Capital Expenditure Group - the group responsible for making investment decisions.  Your new assignment is to lead a team of employees in estimating the cost of capital for this project, which will entail calculating the expected rates of return for debt, preferred stock and common stock.  You are also being asked some basic finance questions to share with your team.  Your assistant has gathered the data in the attached spreadsheet.  Answer the following questions based on the data.

 

The first question is :  What is the Yield-To-Maturity of the current bonds outstanding?