P$7-47.$ Interpreting Debt Footnotes on Interest Rates and Interest Expense

Boston Scientific discloses the following as part of its long$-$term debt footnote in its December $31,201810-$K$.$

Borrowings and Credit Agreements

$($I$)$ Corporate credit rating improvements may result in a decrease in the adjusted interest rate on our Novernber $2035$ Notes to the extent

that our lowest credit rating is above BBB$-$ or Baa$3.$ The interest rates on our November $2035$ notes will be permanently reinstated to

the issuance rate if the lowest credit ratings assigned to these senior notes is either $A-$ or $A3$ or higher.

Boston Scientific discloses its required principal debt repayments due during each of the next five years

and thereafter.Boston Scientific also discloses the following information.

Interest Expense The following table provides a summary of our Interest expense and average bor$-$

rowing rate:

The price of Boston Scientific's bonds in February $2019$ follows.

Required

a$.$ What amount of Boston Scientific's long$-$term debt is due in $2019?$

b$.$ What is the total amount of Boston Scientific's long$-$term debt at December $31,2018,$ including the

current maturities?

c$.$ The company's balance sheet reports short$-$term debt including current maturities of $$2,253$ million

and $$1,801$ million in $2018$ and $2017,$ respectively. Compute the average effective interest rate on the

company's total debt for fiscal $2018.$ Compare this to the average interest rate the company reports.

d$.$ Explain how the amount of cash paid for interest can differ from the amount of interest expense re$-$

corded in the income statement.

e$.$ The $$1,000$ million $4\mathrm{.}00\%$ note due in $2028$ is priced at $109\mathrm{.}35(109\mathrm{.}35\%$ of face value, or $$1,093\mathrm{.}50$

million$)$ as of early $2019,$ resulting in a current yield of $2\mathrm{.}8\%.$ Assuming that the company's credit

rating has not changed since the bond was issued, what does the pricing of this $4\mathrm{.}00\%$ bond imply

about interest rate changes since Boston Scientific issued the bond?

f$.$ Compare the bonds that mature in $2023$ and $2028.$ Explain why the bond with the higher coupon rate

$(4\mathrm{.}125\%)$ has the lower yield $(2\mathrm{.}41\%).$

PLEASE ANSWER PART D$,$E$,$F$.$ THANK YOU