Company Name Home Depot

In this assignment you will calculate 1) the total debt D and 2) the weighted yield to maturity R_D for your assigned corporation. To find D and R_D we must create a table in Excel. A sample table is shown below and is also attached for you to use. Notice in the table that columns C, D, and F are calculated from the values you will enter in the other columns. This blue data is found on the FINRA website.

Using this guide, enter the blue data to complete the calculations in the excel table. Note: If your corporation data has more than ten bonds, just choose any ten for your calculations in the Excel table. You will use your calculated D and R_D to complete the WACC calculation due next week.

Click on the Symbol of two of your bonds. In a separate word document answer the following questions (feel free to copy/paste these into your word document):

1. Bond Maturity:
   1. What maturity date is farthest into the future? Approximately how many years (or months) from now?
   2. What maturity date is the next one to expire? Approximately how many years (or months) from now?
   3. Refer to Figure 7.2 on page 206 in the text. Of the two bonds above, which bond has the most interest rate risk?
2. The Call Provision:
   1. Are either of the bonds Callable?
   2. Click on the ^ in the Callable row. For callable bonds, is it important to consider your yield-to-call? Why?
   3. Refer to "The Call Provision" on page 215-216 of the text. True or False: In a "make-whole" call provision, the call price is higher when interest rates are lower and vice versa.