Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the data provided, calculate Alphabet's cost of debt as a value-weighted average of its existing bond's yield-to-maturity (data can be located on the tab

image text in transcribedimage text in transcribed

Using the data provided, calculate Alphabet's cost of debt as a value-weighted average of its existing bond's yield-to-maturity (data can be located on the tab called "GOOG Bonds"). Report your answer as a percentage rounded to two decimal places (i.e. if your answer is 0.0123 report it as 1.23). Weight Weighted YTM Maturity 5/19/21 5/19/21 2/25/24 2/25/24 8/15/26 Coupon Price 3.63% $ 103.33 $ 3.63% $ 103.85 $ 3.38% $ 102.56 $ 3.38% $ 103.23 $ 2.00% $ 90.84 $ Bonds Outstanding 173,343 $ 826,657 $ 853,693 $ 146,307 $ 2,000,000 $ $ Market Value 179,106,655 858,483,295 875,547,541 151,031,253 1,816,880,000 3,881,048,743 Yield-to-Maturity 2.56% 2.39% 2.91% 2.79% 3.24% 0.00% 0.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Analyse Bank Financial Statements

Authors: Thomas Padberg

1st Edition

0857195182, 978-0857195180

More Books

Students also viewed these Finance questions

Question

2. Describe how technology can impact intercultural interaction.

Answered: 1 week ago