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It's September 2020 and you are trying to estimate the cost of debt for a 10 year project at Boeing. Boing is currently rated BBB
It's September 2020 and you are trying to estimate the cost of debt for a 10 year project at Boeing. Boing is currently rated BBB by S&P and you have collected the following information on its bonds. Given this information, what is the best estimate for the cost of debt for this project?
Bond Symbol | Callable | Coupon Rate | Maturity Date | Yield to Maturity |
A | Yes | 2.35% | 9/30/2021 | 0.68% |
B | No | 4.50% | 9/30/2021 | 0.70% |
C | No | 3.10% | 9/30/2025 | 2.45% |
D | Yes | 1.20% | 8/15/2029 | 3.31% |
E | No | 5.65% | 7/30/2030 | 3.50% |
F | No | 7.00% | 8/15/2035 | 3.65% |
G | No | 4.50% | 9/30/2040 | 4.00% |
I. | 3.1% | |
II. | 0.7 | |
III. | 2.45% | |
IV. | 2.35% | |
V. | 3.5% | |
VI. | 5.65% |
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