Walmart Bond Issues: Assume a market rate of 1.5%. Dont forget to multiply market rate by 2 and divide pmnt amount /2. The original amounts are done for you so use that as N.

1.) In your spreadsheet after pasting in the above information (spreadsheet items not 10K) calculate the following for each bond issue: Payment amount.

Q1 40 points

2.) What is Walmarts bond rating? (5 Points) 3.) What is the relationship between the PV and the market interest rate? Does a lower market rate impact the price of the bond? Why? 4.) Given Walmart's bond rating and using the following ratios from Case 1 answer the following: a.) What is their debt-to-equity ratio in comp to the industry b.) Quick ratio in comp to the industry c.) Interest coverage ratio in comp to the industry d.) Net profit as a % of sales in comp to the industry e.) Discuss in detail how each of the above ratios impacts the credit rating that Walmart has been assigned. f.) Recalculate the debit/equity ratio assuming that Walmart adds another $500MM to its total liabilities (pull the case 1 sheet and add $500 million to the total liabilities). Equity stays the same. g.) Compare the ratio in problem F to the industry and explain if you were a credit analyst at Moody's if you would lower their credit rating or leave the same. I need a detailed explanation. 5.) Using the information in this case: a.) Would you add Walmart bonds to your 401K if Storz allowed it? b.) Why or why not?