Question
Bond Price Coupon rate Maturity date Yield to Maturity Current Yield Amount Outstanding 97.978 2.30% 2/15/31 2.54% 2.35% 150,000 98.829 2.95% 5/15/23 5.25% 2.98% 500,000,000
Bond Price | Coupon rate | Maturity date | Yield to Maturity | Current Yield | Amount Outstanding |
97.978 | 2.30% | 2/15/31 | 2.54% | 2.35% | 150,000 |
98.829 | 2.95% | 5/15/23 | 5.25% | 2.98% | 500,000,000 |
95.489 | 3.63% | 5/15/25 | 5.56% | 3.80% | 500,000,000 |
86.724 | 4.38% | 5/15/30 | 6.65% | 5.04% | 750,000,000 |
74.391 | 2.30% | 2/15/31 | 6.32% | 3.09% | 999,850,000 |
Use the bond price, and outstanding amounts (quantity available) you collected for each bond to estimate an average current bond price. Use the weighted average approach.
1a) For the average bond price, use the quantity available variable as a substitute for the FMV to calculate the weights.
b)Remembering that bond prices are quoted as a percent of par value and that the value of bonds on the balance sheet are the par values, use your weighted average bond price from question 1a to estimate the FMV of the companys outstanding bonds. For this question, you must add the current portion of long-term debt to the long-term debt value to use as your par value.
current portion + long-term debt = 4799
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