Question
ii. You will need to calculate the firms composite YTM on its bonds. This can be achieved by calculating a weighted-average YTM for its bond
ii. You will need to calculate the firms composite YTM on its bonds. This can be achieved by calculating a weighted-average YTM for its bond issues. iii. After calculating the YTM for the bond issues, calculate the firms after-tax cost of debt. If the firms marginal tax rate cannot be identified in its 10-K, assume that the tax rate will be 35%. calculate Weighted Average YTM (Weighted average cost of debt) AIRTRAN HLDGS INC LUV3708006 Corporate Bond 7.000 (coupon) 07/01/2023 (maturity date) Southwest Airlines Pass Through Certific LUV.HG No Corporate Bond 6.530 (coupon) 07/02/2019 (maturity date) 100.400 (Price) 6.418 (yield) SOUTHWEST AIRLS 2007-1 PASS THRU TR LUV.HH Yes Corporate Bond 6.150 (coupon) 02/01/2024 (maturity date) 110.250 (price) 4.307(yield) SOUTHWEST AIRLS 2007-1 PASS THRU TR LUV.HI Yes Corporate Bond 6.650 (Coupon) 08/01/2022 (maturity date) 110.000 (price) 4.496 (yield) SOUTHWEST AIRLS CO LUV.HE Yes Corporate Bond 8.000 (coupon) 01/02/2021 (maturity date) SOUTHWEST AIRLS CO LUV.GG Yes Corporate Bond 7.375 (coupon) 03/01/2027 (maturity date) 132.234 (price) 3.446 (yield) SOUTHWEST AIRLS CO LUV4181058 Yes Corporate Bond 2.750 (coupon) 11/06/2019 (maturity date) 101.742(price) 1.976 (yield) SOUTHWEST AIRLS CO LUV4307713 Yes Corporate Bond 2.650 (coupon) 11/05/2020 (maturity date) 102.194 (price) 1.962 (yield) SOUTHWEST AIRLS CO LUV4422286 Yes Corporate Bond 3.000 (coupon) 11/15/2026 (maturity date) 97.643 (price) 3.293 (yield) SOUTHWEST AIRLS CO LUV.HC No Corporate Bond 7.640 (coupon) 01/01/2018 (maturity date) 98.250 (price) 9.666 (yield) SOUTHWEST AIRLS CO LUV.GT Corporate Bond 5.125 (coupon) 03/01/2017 (maturity date) 100.050 (price) 0.609 (yield) what also would be the weighted average YTM in a percent form?
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