Bond issued on: April 1, 2009

Maturity Date: April 1, 2014

Principal = US$1,500,000,000

Issue Price of Bond: 99.666%

Interest Rate: 5.50% per year

BHP Billiton issued debt:

Interest will be payable semiannually in arrears on April 1 and October 1 of each year, commencing October 1, 2009, and ending on the respective maturity date.

 

Complete the amortization table below: 

Transcribed Image Text:

Date 2009-04-01 2009-10-01 2010-04-01 2010-10-01 2011-04-01 2011-10-01 2012-04-01 2012-10-01 2013-04-01 2013-10-01 2014-04-01 2014-10-01 I I I I I I I I 1 I 1 1 I I Period 0 1 2 3 4 5 6 7 8 9 10 10 Cash Payment (1) $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $1,500,000,000 Interest expense = Yield ratex Book value of debt as of the beginning of the period) Interest Expense (2) Amortized Note Discount (3) Note Discount Balance (4) Face Value of Notes (5) $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 Book Value of Market Value of Notes (6) Notes I 1 I i 1 I i I Date 2009-04-01 2009-10-01 2010-04-01 2010-10-01 2011-04-01 2011-10-01 2012-04-01 2012-10-01 2013-04-01 2013-10-01 2014-04-01 2014-10-01 I I I I I I I I 1 I 1 1 I I Period 0 1 2 3 4 5 6 7 8 9 10 10 Cash Payment (1) $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $82,500,000 $1,500,000,000 Interest expense = Yield ratex Book value of debt as of the beginning of the period) Interest Expense (2) Amortized Note Discount (3) Note Discount Balance (4) Face Value of Notes (5) $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 $1,500,000,000 Book Value of Market Value of Notes (6) Notes I 1 I i 1 I i I

Answer rating: 100% (QA)

SOLUTION Date 20090401 Period 0 Face Value of Notes 1500000000 Book Value of Notes 1500000000 Market Value of Notes NA Date 20091001 Period 1 Cash Pay... View the full answer