Bond Results Ratings Last Sale Coupon Maturity Moody's S&P Price Yield 6.600 03/15/2020 B3 101.750 4686 7.000 03/152023 B3 97.750 7670 8.950 03/152043 B3 96550 9311 Callable Sub-Product Type Yes Corporate Bond Yes Corporate Bond Yes Corporate Bond Corporate Bond Corporate Bond Issuer Name Symbol AVON PRODS INC AVP3979751 AVON PRODS INC AVP3979750 AVON PRODS INC AVP3979749 AVON PRODS INC AVP.GE AVON PRODS INC AVP GF 07/122020 07/122020 52 625 3850 Avon Product Inc. has the following traded bond information on Finra. Symbol AVP 3979751 2. Avon issued the first bond (Symbol AVP 39797511 on July 3, 2013 with a par value of $1000. The bond is a semi-annual bond(Coupons are paid on March 15 and September 15 in each year). What is the market value of this bond if the total book value of the bond is $500 million of you have all necessary info compute it and show your computation, if not explain how you would compute it). b. What is the cost of debt for Avon if we assume that Avon had only issued the first Symbol AVP 3979751 bond in other words, assume that there are no other bonds available if you have all necessary info compute it and show your computation, if not explain how you would compute it) c. What is the cost of debt for Avon based on market value if we take into account all the bonds with necessary information available and assume that for each bond the book value is 5500 million? Bond Results Ratings Last Sale Coupon Maturity Moody's S&P Price Yield 6.600 03/15/2020 B3 101.750 4686 7.000 03/152023 B3 97.750 7670 8.950 03/152043 B3 96550 9311 Callable Sub-Product Type Yes Corporate Bond Yes Corporate Bond Yes Corporate Bond Corporate Bond Corporate Bond Issuer Name Symbol AVON PRODS INC AVP3979751 AVON PRODS INC AVP3979750 AVON PRODS INC AVP3979749 AVON PRODS INC AVP.GE AVON PRODS INC AVP GF 07/122020 07/122020 52 625 3850 Avon Product Inc. has the following traded bond information on Finra. Symbol AVP 3979751 2. Avon issued the first bond (Symbol AVP 39797511 on July 3, 2013 with a par value of $1000. The bond is a semi-annual bond(Coupons are paid on March 15 and September 15 in each year). What is the market value of this bond if the total book value of the bond is $500 million of you have all necessary info compute it and show your computation, if not explain how you would compute it). b. What is the cost of debt for Avon if we assume that Avon had only issued the first Symbol AVP 3979751 bond in other words, assume that there are no other bonds available if you have all necessary info compute it and show your computation, if not explain how you would compute it) c. What is the cost of debt for Avon based on market value if we take into account all the bonds with necessary information available and assume that for each bond the book value is 5500 million
