Hi i needs some help, were doing it on Coke Cola and the the bond was issued 5/31/16 and mutures 6/1/2026, ytm is 2.95

There are two additional websites that are essential for this project.The first is www.finra.org/marketdata.This site provides prices on outstanding corporate bond issues, yield to maturity, the dates they were last traded and a host of other important information, including information as of the issue date.The second is wsj.com.Under the Market Data heading, select Rates.At the top of that page is a table that gives an overview of the Treasury market.Click where it says See for daily closing prices for a list prices and yields to maturity of all outstanding Treasury issues.]

1.When was the bond issued? {Source finra.org]

2.What is the final maturity date of the bond? [Source: Prospectus]

3.What is the coupon rate on the bond? [Source: Prospectus]

4.On what dates are interest payments made each year? {Source: Prospectus]

5.What was the size of the bond issue (i.e. the total face value of bonds issued? [Source: Prospectus or finra.org]

6.What was the spread (margin) above a comparable maturity Treasury bond at the time of the issue?[Spread means Credit spread or default spread or yield spread (p. 177 of textbook).It is the difference between the yield to maturity (YTM) on your bond and the YTM on a Treasury note or bond of similar maturity.It is an indicator of default risk.][Source: finra.org]

7.What was the bond rated at the time of issue? Indicate the rating agency that issued each rating. [Source: Prospectus]

8.At what price was the bond issued?[Source: finra.org]

9.What is the minimum denomination (par value) of a bond? [Source: Prospectus]

10.Is the bond callable?At what price?When?[Source: Prospectus]

11.What financial ratios are tied to the bond issue (financial covenants)?[Source: Prospectus]

12.What is the price of the bond as of Mar. 3, 2017 (for the draft report) and Apr. 14, 2016 (for the final report)? When was the bond last traded?[Source: finra.org.]

13.What is the bonds yield to maturity (YTM) as of the dates in #12 above?[Source: finra.org]What is the YTM on a T-bond maturing at about the same time? [Source www.wsj.com]

14.Calculate the EBITDA to Interest ratio for the two last year ends of the company.[Source Collect data from companys last 10K report at sec.gov]

15.Calculate the spread at the dates listed in #12 above?[Source: finra.org for YTM on corporate bond and wsj.com for YTM on T-bond]

16.Has the rating of the bond changed since issue date?What is the new rating? [Old rating from Prospectus, current rating from finra.org]

17.How many separate bond issues does the company have outstanding?[This information should be reported in the companys 10K report and can be checked against the information on bond issues available on the finra.org site.]

18.What is the face value of all the companys outstanding bonds?[The aggregate face value of all the bond issues identified in the previous question.]

19.Calculate the market value of all the bonds outstanding (use prices as of the first date in #12).[Multiply the face value of each bond issue times its price, which gives the market value of each issue and sum these values.If the company has more than 10 bond issues, do this and the following calculation for the 10 largest issues.]

20.Calculate the average yield to maturity, weighted by the market value of the debt.[Multiply the market value of each issue by its yield to maturity, sum all these amounts and divide that sum by the total amount of all the market values.]

21.Calculate the companys after tax cost of debt. [Calculate the companys tax rate from the companys last 10K report.After tax cost equals average YTM calculated above times (1 tax rate)]]

22.Calculate the holding period return for an investor who invested in a $1,000 face value bond at issue date and held it to the dates listed in #12.Calculate the geometric average annual rate of return.[[Holding period return (HPR) = (Bond price at stated date Bond price at issuance + Total amount of interest payments collected since issuance of the bond)/Bond price at issuance.Assume a $1,000 par value for this calculation.

23.Do the same calculation as in #22 above for the comparable maturity T-bond.Which is higher?Why do they differ?

The geometric average annual return is (1 + HPR)^1/n, where n is equal to the number of years (express to the nearest tenth) from issuance date to the last date listed in #1

Coca Cola Co. Bond Issue

1. When was the bond issued?

A) 5/31/16

2) What is the final maturity date on bond?

A) 6/01/2026

3) What is the coupon rate on the bond?

A) 2.55%

4) On what dates are interest payments made each year?

A) 2 times per year, 6/1/17

12/1/17

5) What was the size of the bond issue?

A) $500,000,000

6) 1. What was the spread (margin) above a comparable maturity Treasury bond at the time of the issue? [Spread means Credit spread or default spread or yield spread (p. 177 of textbook). It is the difference between the yield to maturity (YTM) on your bond and the YTM on a Treasury note or bond of similar maturity. It is an indicator of default risk.] [Source: finra.org] 1.84 similar bond YTM at 10 years, our bond YTM is 2.95 2.95-1.84= 1.11

7) What was the bond rate at the time of issue?

A) Aa3 on 5/25/16 by: Moody source--Business insider

8) At what price was bond issued?

A) $99.98

9) What is the par value?

A) $1,000

10) Is bond callable? At what price?

A) No

11) What financial ratios are tied to the bond issue (financial covenants)?

12) What is the price of the bond as of March 3, 2017? When was bond last traded?

A) $95.12, 3/3/2017 B) Last traded - 3/8/2017

13) What is the bonds YTM as of the dates in #12?

1. 03/03/2017 - 3.15%

YTM on a T-bond maturing at about the same time? 2.596%

14) income before taxed: 8,136 million

15) 1. Calculate the spread at the dates listed in #12 above? [Source: finra.org for YTM on corporate bond and wsj.com for YTM on T-bond]

16) Moody's Rating Aa3 (05/25/2016)

Standard & Poor's Rating AA- (05/25/2016)

Fitch Rating A+ (09/26/2016

17) shares outstanding? 4.292 Billion

18) What is the face value of all the companys outstanding bonds?

31 billion

19) Calculate the market value of all the bonds outstanding

20) Calculate the average yield to maturity, weighted by the market value of the debt. [Multiply the market value of each issue by its yield to maturity, sum all these amounts and divide that sum by the total amount of all the market values.]

1.86%

21) Calculate the companys after tax cost of debt. [Calculate the companys tax rate from the companys last 10K report. After tax cost equals average YTM calculated above times (1 tax rate)]]

22) Calculate the holding period return for an investor who invested in a $1,000 face value bond at issue date and held it to the dates listed in #12. Calculate the geometric average annual rate of return. [[Holding period return (HPR) = (Bond price at stated date Bond price at issuance + Total amount of interest payments collected since issuance of the bond)/Bond price at issuance. Assume a $1,000 par value for this calculation.

23) Do the same calculation as in #22 above for the comparable maturity T-bond. Which is higher? Why do they differ?

The geometric average annual return is (1 + HPR)^1/n, where n is equal to the number of years (express to the nearest tenth) from issuance date to the last date listed in #12 above.]