Question
Using the chart below, find the yield to maturity for each of Teslas bonds. What is the weighted average cost of debt for Tesla using
Using the chart below, find the yield to maturity for each of Teslas bonds. What is the weighted average cost of debt for Tesla using the book value weights and the market value weights? Does it make a difference in this case if you use book value weights or market value weights?
| Bonds | Ratings | Last Sale | Original Offering | Amount Outstanding Size | Yield at Offering | YTM | Book Value Weights | Market Value Weights | ||||||||
| Issuer Name | Symbol | Callable | Sub-Product Type | Coupon | Maturity | Moody's | S&P | Price | Yield | OG | Yield to Maturity | |||||
| TESLA INC | TSLA4103351 | Corporate Bond | 1.250 | 3/1/2021 | B- | $ 416.62 | $ (137.09) | $ 1,200,000,000 | $ 1,380,000,000 | 1.25% | ||||||
| TESLA INC | TSLA4474416 | Corporate Bond | 2.375 | 3/15/2022 | B- | $ 455.00 | $ (72.57) | $ 850,000,000 | $ 977,500,000 | 2.38% | ||||||
| TESLA INC | TSLA4530906 | Yes | Corporate Bond | 5.300 | 8/15/2025 | Caa1 | B- | $ 102.00 | $ 4.59 | $ 1,800,000,000 | $ 1,800,000,000 | 5.30% | ||||
| TESLA INC | TSLA4830349 | Corporate Bond | 2.000 | 5/15/2024 | B- | $ 480.00 | $ (36.22) | $ 1,600,000,000 | $ 1,840,000,000 | 2.00% | ||||||
| TESLA INC | TSLA4530907 | Corporate Bond | 5.300 | 8/15/2025 | $ 102.58 | $ - | $ 1,800,000,000 | 530% | ||||||||
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Internal Audit Quality Developing A Quality Assurance And Improvement Program
Authors: Sally-Anne Pitt
1st Edition
1118715519, 978-1118715512
