Question
Calculate the cost of debt for Tesla. Go to www.finra.org. Click on the Investors link, then the Market Data link, then the Bonds link, then
Calculate the cost of debt for Tesla. Go to www.finra.org. Click on the Investors link, then the Market Data link, then the Bonds link, then the Search link. Using the Quick Search, select Corporate under the Debt/Asset Class, and enter TSLA. A list of outstanding bonds for TSLA appears. Click on the Symbol for each bond issue to get more information about the bond.
For each bond issue, find its last trade price, last trade yield, and outstanding book value (Amount Outstanding Size).
Calculate the market value of each issue and the total market value of the outstanding bonds.
What is the weighted average cost of debt for TSLA using the book value weights and the market value weights?
Does it make a difference in this case if you use book value weights or market value weights?
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