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I need help on this by 11 PM. Attached is the file containing the problem. Analyzing Debt Terms, Yields, Prices, and Credit Ratings Assume Reproduced
I need help on this by 11 PM. Attached is the file containing the problem.
Analyzing Debt Terms, Yields, Prices, and Credit Ratings Assume Reproduced below is the longterm debt footnote from the 10K report of Southwest Airlines. LongTerm Debt (in millions) 2012 2011 7 7/8% Notes due 2012 $ $ 100 French Credit Agreements due 2017 50 37 6 1/2% Notes due 2017 370 369 5 1/4% Notes due 2019 350 336 5 3/4% Notes due 2021 300 300 5 1/8% Notes due 2022 311 300 French Credit Agreements due 2022 94 100 Pass Through Certificates 480 7 3/8% Debentures due 2032 103* 100 52 63 Capital leases 2,110 1,705 Less current maturities 45 122 Less debt discount and issuant costs 19 16 $ $ 2,046 1,567 * The carrying value of these debentures is 103 while the face value is 100. The company marks these debentures to market each period because the debentures are hedged with interestrate swaps. The swap and the debentures are both marked to market, where any gains and losses offset each other. As of December 31, 2012, aggregate annual principal maturities of debt and capital leases (not including amounts associated with interest rate swap agreements and interest on capital leases) for the fiveyear period ending December 31, 2017, were $45 million in 2013, $40 million in 2014, $55 million in 2015, $38 million in 2016, $416 million in 2017, and $1.5 billion thereafter. Assume below is a summary of the market values of the Southwest Airlines' bonds maturing from 2017 to 2032 (from Capital IQ). Security Type Coup on Offer Date Amt. Current Outstandin Price g ($mm) Yie ld Mar01 2017 Corporate Debentures 6.500 Feb26 2007 370.00 97.290 7.4 50 Oct01 2019 Corporate Debentures 5.250 Sep14 2009 350.00 83.164 9.0 24 Mar01 2032 Corporate Debentures 7.375 Feb25 2002 100.00 82.409 9.4 08 Maturity Date (a) What is the amount of longterm debt reported on Southwest's 2012 balance sheet? $ Answer What are the scheduled maturities for this indebtedness? Year ($ millions) 2013 2014 $ Answer 39 $ Answer 0 I 2015 2016 2017 thereafter $ Answer 0 $ Answer 0 $ Answer 0 $ Answer 0Step by Step Solution
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