Question
In this assignment you will calculate 1) the total debt D and 2) the weighted yield to maturity R D for DOLLAR TREE COMPANY. To
In this assignment you will calculate 1) the total debt Dand 2) the weighted yield to maturity RD for DOLLAR TREE COMPANY. To find D and RD we must create a table in Excel. A sample table is shown below
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. Please see the REVISED FINRA CORPORATE BONDS TOOL STUDY GUIDE 2023-05-30.docx. 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 RD 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):
- Bond Maturity:
- What maturity date is farthest into the future? Approximately how many years (or months) from now?
- What maturity date is the next one to expire? Approximately how many years (or months) from now?
- Refer to Figure 7.2 on page 206 in the text. Of the two bonds above, which bond has the most interest rate risk?
- The Call Provision:
- Are either of the bonds Callable?
- Click on the ^ in the Callable row. For callable bonds, is it important to consider your yield-to-call? Why?
- 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.
In this assignment you will calculate 1) the total debt Dand 2) the weighted yield to maturity RD for DOLLAR TREE COMPANY. To find D and RD we must create a table in Excel. A sample table is shown below
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. Please see the REVISED FINRA CORPORATE BONDS TOOL STUDY GUIDE 2023-05-30.docx. 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 RD 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):
- Bond Maturity:
- What maturity date is farthest into the future? Approximately how many years (or months) from now?
- What maturity date is the next one to expire? Approximately how many years (or months) from now?
- Refer to Figure 7.2 on page 206 in the text. Of the two bonds above, which bond has the most interest rate risk?
- The Call Provision:
- Are either of the bonds Callable?
- Click on the ^ in the Callable row. For callable bonds, is it important to consider your yield-to-call? Why?
- 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started