You are required to estimate the cost of debt. Calculate three measures. The company is Home Depot

• Use the yield on companys long-term bond outstanding as the pre-tax cost of debt. Use a long-term straight bond with no convertible features for this purpose. (Source: Bloomberg fixed income). Refer to appropriate slides in the lecture notes.
• Estimate cost of debt from financials (gross interest expense from income statement divided by long-term + short-term debt outstanding from balance sheet).
• Use the cost of debt associated with the firms current credit rating (i.e., default spread associated with the rating plus 10-year treasury rate. Most recent default spreads are available on Prof. Aswath Damodarans website)