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Homework answers / question archive / Future principal payments (adjusted for the effects of the cross-currency swap agreements associated with the January 2021 Notes and July 2025 Notes) for all of our borrowings at May 31, 2019, were as follows:  $ millions  Fiscal 2020 $4,500  Fiscal 2021 2,631  Fiscal 2022 8,250  Fiscal 2023 3,750  Fiscal 2024 3,500  Thereafter 33,984  Total $56,615  Reproduced below is a summary of the market values as of August 10, 2019, of select Oracle bonds

Future principal payments (adjusted for the effects of the cross-currency swap agreements associated with the January 2021 Notes and July 2025 Notes) for all of our borrowings at May 31, 2019, were as follows:  $ millions  Fiscal 2020 $4,500  Fiscal 2021 2,631  Fiscal 2022 8,250  Fiscal 2023 3,750  Fiscal 2024 3,500  Thereafter 33,984  Total $56,615  Reproduced below is a summary of the market values as of August 10, 2019, of select Oracle bonds

Accounting

Future principal payments (adjusted for the effects of the cross-currency swap agreements associated with the January 2021 Notes and July 2025 Notes) for all of our borrowings at May 31, 2019, were as follows: 

$ millions 
Fiscal 2020 $4,500 
Fiscal 2021 2,631 
Fiscal 2022 8,250 
Fiscal 2023 3,750 
Fiscal 2024 3,500 
Thereafter 33,984 
Total $56,615 

Reproduced below is a summary of the market values as of August 10, 2019, of select Oracle bonds. Source: Markets Insider 

Maturity Date  Amount $ Price Coupon %  Yield to Maturity % 
July 2020 $1,000 109.47 3.875 2.613 
April 2038 $1,250 136.78 6.5 3.36 
July 2039 $1,250 120.47 6.125 3.45 

(a) What is the amount of debt reported on Oracle's May 31, 2019, balance sheet? 

What are the scheduled maturities for this indebtedness? 

d.) Oracle's $1250 million 6.5% notes traded at 136.78 of August 10, 2019. What is the market value of these notes on that date?

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a.)

Amount of debt reported on Oracle's May 31, 2019, balance sheet;

Total notes payable and other borrowings = $56167 million

 

Schedule maturities: $ million
2020 4500
2021 2631
2022 8250
2023 3750
2024 3500
Thereafter 33984

 

 

 

d.)

Notes traded= 1250 million

Rate= 136.78%

So,

Market value = 1250* 136.78%

1709.75 million

 

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