Fill This Form To Receive Instant Help
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. 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?
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