Analyzing Debt Terms, Yields, Prices, and Credit Ratings Reproduced below is the debt footnote from...
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Analyzing Debt Terms, Yields, Prices, and Credit Ratings Reproduced below is the debt footnote from the 2013 10-K report of Dell Inc.
Long-Term Debt (in millions)
February 1, 2013
February 3, 2012
Senior Notes
$400 million issued on June 10, 2009, at 3.375% due June 2012 (2012 Notes)
$
$ 400
$600 million issued on April 17, 2008, at 4.70% due April 2013 (2013A Notes)
601
605
$500 million issued on September 7, 2010, at 1.40% due September 2013
500
499
$500 million issued on April 1, 2009, at 5.625% due April 2014(b)
500
500
$300 million issued on March 28, 2011, with a floating rate due April 2014 (2014B Notes)
300
300
$400 million issued on March 28, 2011, at 2.10% due April 2014
400
400
$700 million issued on September 7, 2010, at 2.30% due September 2015(b)
702
701
$400 million issued on March 28, 2011, at 3.10% due April 2016(b)
402
401
$500 million issued on April 17, 2008, at 5.65% due April 2018(b)
502
501
$600 million issued on June 10, 2009, at 5.875% due June 2019(b)
604
602
$400 million issued on March 28, 2011, at 4.625% due April 2021
398
398
$400 million issued on April 17, 2008, at 6.50% due April 2038
400
400
$300 million issued on September 7, 2010, at 5.40% due September 2040
300
300
Senior Debentures
$300 million issued on April 3, 1998, at 7.10% due April 2028 (Senior Debentures)(a)
379
384
Other
Long-term structured financing debt
872
920
Less: current portion of long-term debt
(1,618)
(924)
Total long-term debt
5,242*
6,387
Short-Term Debt
Commercial paper
1,807
1,500
Short-term structured financing debt
416
440
Current portion of long-term debt
1,618
924
Other
2
3
Total short-term debt
3,843
2,867
Total debt
$ 9,085
$ 9,254
*Reflects carrying value (net book value) of debt. Aggregate future maturities of long-term debt at face value were as follows at February 1, 2013:
Maturities by Fiscal Year
(in millions)
2014
2015
2016
2017
2018
Thereafter
Total
Aggregate future maturities
of long-term debt outstanding
$ 1,617
$ 1,465
$ 790
$ 400
$ --
$ 2,500
$ 6,722**
**Reflects face value of debt. Reproduced below is a summary of the market values as of November 2013 of the Dell bonds maturing from 2021 to 2040 (from Morningstar, quicktake.morningstar.com).
Name
Maturity Date
Amount $
Price
Coupon %
Yield to Maturity %
Dell 5.4%
9/10/2040
300
69.50
5.4
8.24
Dell 6.5%
4/15/2038
400
77.30
6.5
8.77
Dell 4.625%
4/1/2021
400
91.50
4.625
6.07
(a) What is the amount of long-term debt reported on Dell's February 1, 2013 balance sheet? $_________ million What are the scheduled maturities for this indebtedness?
2014
$______
million
2015
$______
million
2016
$______
million
2017
$ ______
million
2018
$______
million
thereafter
$______
million
Dells $300 million 5.4% notes traded at 69.5 or 69.5% of par, as of November 2013. What is the market value of these notes on that date? (Round your answer to one decimal place.)
$_______ million
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