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Question 1 - Walmart (WMT) has the following three bonds outstanding. First, calculate the YTM...

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Question 1 - Walmart (WMT) has the following three bonds outstanding. First, calculate the YTM for each bond in the table (Use the YIELD function). Then fill in the rest of the table and calculate the market value of the debt to determine the overall cost of debt for the company. (10 points) Bond A Bond B Bond C Settlement date Settlement date Settlement date 01/01/19 01/01/23 500,000 Maturity date Maturity date Maturity date Book value of bonds 01/01/20 01/01/27 450,000 5.01% 01/01/21 01/01/45 300,000 Book value of bonds Book value of bonds 3.71% 8.95% 100.00 100.00 100.00 Annual coupon rate Face value (% of par) Coupons per year Bond price (% of par) Annual coupon rate Face value (% of par) Coupons per year Bond price (% of par) Annual coupon rate Face value (% of par) Coupons per year Bond price (% of par) 2 2 2 98.28 101.32 105.92 Quoted Price Market Value Weight Bond YTM Book Value Market Value Weighted YTM 00 D Tax rate: 27.0% After tax cost of debt

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