Calculating the Promised YTM Evaluate the promised YTM for the bonds issued by Ford (F) and General Motors (GM). You may assume that interest is paid semiannually. Also, round the number of compounding periods to the nearest six months.

1. Calculate the annualized yield to maturity as the cost of debt.

2. Find the cost of debt for given credit rating, which can also use the cost of debt

See attached files

solution with formula and ex Ford GM ----- annual coup-on rears to matun'tv --- # of Parmenlr- Per rear [Mi -== # of payrnenis till maturity - amount for each payment - c annual coupon I m ----- PMT c usng excel Rate function ---- ---- - --- _== - --- ---- ---- The spread is quoted in has-i point- [bps-1. --- ----- annual Yield to maturity [AP' h Solution with credit rating risk free rate Credit rating Credit spread annual Yield to maturity [AP'