Question
Kf (1) There are some bonds shown as a negative yield (For example, TSLA4830349. Explain why? (2) Calculate (estimate) the YTM of the bond TSLA4530907.
Kf
(1) There are some bonds shown as a negative yield (For example, "TSLA4830349." Explain why?
(2) Calculate (estimate) the YTM of the bond "TSLA4530907." Be sure to show your work. You may assume the bonds are semiannual coupon bonds. Also know that the bond prices are expressed as "percentage of par" e.g. $101 means 101% of par value.
(3) Compare the bond "TSLA4530907" with "TSLA4530906". What's the difference between these two bonds? Why their YTM is different even though they both mature on the same day?
(4) Ultimately, what is the estimated cost of debt you should use for Tesla?
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