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You now need to calculate the cost of debt for Tesla. Go to finra-markets.morningstar.com/BondCenter, enter Tesla as the company, and find the yield to maturity
You now need to calculate the cost of debt for Tesla. Go to finra-markets.morningstar.com/BondCenter, enter Tesla as the company, and 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?
Issuer - TESLA INC | Symbol | Coupon | Maturity Date | Last Trade Price | Yield | Amount Outstanding | Payment Frequency | Price at Offering |
TESLA INC | TSLA4103351 | 1.25 | 3/1/21 | 1103.97 | -2337.17 | 1,376,000 | Semi - Annual | 100 |
TESLA INC | TSLA4474416 | 2.38 | 3/15/22 | 1239.06 | 137.32 | 977,000 | Semi - Annual | 100 |
TESLA INC | TSLA4530906 | 5.30 | 8/15/25 | 104.40 | 1.71 | 1,800,000 | Semi - Annual | 100 |
TESLA INC | TSLA4830349 | 2.00 | 5/15/24 | 1281.73 | -64.42 | 1,833,000 | Semi - Annual | 100 |
TESLA INC | TSLA4103350 | 0.25 | 3/1/19 | 99.13 | 105.44 | |||
TESLA INC | TSLA4530907 | 5.30 | 8/15/25 | 103.65 | ||||
Symbol | Book Value | Percent of Total | Quoted Price | Market Price | Percent of Total | Yield to Maturity | Cost of Debt (Using Book Value | Cost of Debt (Using Market Value) |
TSLA4103351 | ||||||||
TSLA4474416 | ||||||||
TSLA4530906 | ||||||||
TSLA4830349 | ||||||||
TSLA4103350 | ||||||||
TSLA4530907 |
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