You are aware that Coca-Cola recently issued a series of new 10-year notes. These notes will mature in 2030 and pay a semiannual coupon rate of 3.75%. This debt issuance was finalized last week and the bonds were issued at par.

You know that the company has a number of other bond issuances outstanding. You jump over to your departments Bloomberg terminal to pull up some information on the rest of KOs outstanding debt and pull up the following:

Use the information provided thus far to calculate KOs effective cost of debt. Question 1) KOs effective cost of debt is ___________________%

The Coca-Cola Company (KO) Outstanding Long-Term Debt |(All data for period ending June 30, 2020) Notes Issuance 4.25% Notes due in 2028 4.50% Notes due in 2029 3.75% Notes due in 2030 3.25% Bonds due in 2035 7.375% Bonds due in 2093 Face Value Current Price Current Yield- Outstanding per $1,000 to-Maturity (in millions) Face Value (YTM) $ 5,500 $ 1,034.57 3.75% 7,700 1,056.84 3.75% 6,400 1,000.00 3.75% 6,000 943.03 3.75% 10,000 1,902.49 3.75% *Most Recent Issue Total: $ 35,600 The Coca-Cola Company (KO) Outstanding Long-Term Debt |(All data for period ending June 30, 2020) Notes Issuance 4.25% Notes due in 2028 4.50% Notes due in 2029 3.75% Notes due in 2030 3.25% Bonds due in 2035 7.375% Bonds due in 2093 Face Value Current Price Current Yield- Outstanding per $1,000 to-Maturity (in millions) Face Value (YTM) $ 5,500 $ 1,034.57 3.75% 7,700 1,056.84 3.75% 6,400 1,000.00 3.75% 6,000 943.03 3.75% 10,000 1,902.49 3.75% *Most Recent Issue Total: $ 35,600