The £500 million 1.75% bond is due in 2026. Given the information provided only, can you tell if the effective interest rate at the time of issuance was higher or lower than 1.75% per annum? Please explain

 

 

Transcribed Image Text:

Bank overdrafts Bank and other loans Credit support obligations €900 million 0.25% bonds due 2021 $300 million 8% bonds due 2022¹) $1,000 million 2.875% bonds due 2022 $1,350 million 2.625% bonds due 2023 Fair value adjustment to borrowings Borrowings due within one year $300 million 8% bonds due 20220¹) $1,350 million 2.625% bonds due 2023 €600 million 0.125% bonds due 2023 $500 million 3.5% bonds due 2023 $600 million 2.125% bonds due 2024 €500 million 1.75% bonds due 2024 €500 million 0.5% bonds due 2024 $750 million 1.375% bonds due 2025 €600 million 1% bonds due 2025 €850 million 2.375% bonds due 2026 £500 million 1.75% bonds due 2026 €750 million 1.875% bonds due 2027 €500 million 1.5% bonds due 2027 €700 million 0.125% bonds due 2028 $500 million 3.875% bonds due 2028 £300 million 2.375% bonds due 2028 $1,000 million 2.375% bonds due 2029 £300 million 2.875% bonds due 2029 €750 million 1.15% bonds due 2029 $1,000 million 2% bonds due 2030 €1,000 million 2.5% bonds due 2032 $750 million 2.125% bonds due 2032 £400 million 1.25% bonds due 2033 €900 million 1.15% bonds due 2034 $400 million 7.45% bonds due 2035¹ $600 million 5.875% bonds due 2036 £600 million 2.75% bonds due 2038 $500 million 4.25% bonds due 2042 $500 million 3.875% bonds due 2043 Bank and other loans Fair value adjustment to borrowings Borrowings due after one year Total borrowings before derivative financial instruments Fair value of cross currency interest rate swaps Fair value of foreign currency swaps and forwards. Fair value of interest rate hedging instruments Lease liabilities Gross borrowings Less: Cash and cash equivalents Net borrowings 2022 £ million 74 105 (19) - 248 - 1,115 (1) 1,522 - 516 413 495 430 430 618 515 731 498 643 430 600 411 298 819 298 645 821 856 614 395 770 331 491 595 409 407 293 (274) 14,498 16,020 2021 E million 112 160 98 769 719 4 1,862 215 970 511 360 431 426 425 537 510 723 497 637 426 594 358 711 298 714 850 534 395 288 427 356 353 253 66 12,865 14,727 (367) 11 283 475 16,422 14,858 (2,285) (2,749) 14,137 12,109 (154) (15) (63) 363 Bank overdrafts Bank and other loans Credit support obligations €900 million 0.25% bonds due 2021 $300 million 8% bonds due 2022¹) $1,000 million 2.875% bonds due 2022 $1,350 million 2.625% bonds due 2023 Fair value adjustment to borrowings Borrowings due within one year $300 million 8% bonds due 20220¹) $1,350 million 2.625% bonds due 2023 €600 million 0.125% bonds due 2023 $500 million 3.5% bonds due 2023 $600 million 2.125% bonds due 2024 €500 million 1.75% bonds due 2024 €500 million 0.5% bonds due 2024 $750 million 1.375% bonds due 2025 €600 million 1% bonds due 2025 €850 million 2.375% bonds due 2026 £500 million 1.75% bonds due 2026 €750 million 1.875% bonds due 2027 €500 million 1.5% bonds due 2027 €700 million 0.125% bonds due 2028 $500 million 3.875% bonds due 2028 £300 million 2.375% bonds due 2028 $1,000 million 2.375% bonds due 2029 £300 million 2.875% bonds due 2029 €750 million 1.15% bonds due 2029 $1,000 million 2% bonds due 2030 €1,000 million 2.5% bonds due 2032 $750 million 2.125% bonds due 2032 £400 million 1.25% bonds due 2033 €900 million 1.15% bonds due 2034 $400 million 7.45% bonds due 2035¹ $600 million 5.875% bonds due 2036 £600 million 2.75% bonds due 2038 $500 million 4.25% bonds due 2042 $500 million 3.875% bonds due 2043 Bank and other loans Fair value adjustment to borrowings Borrowings due after one year Total borrowings before derivative financial instruments Fair value of cross currency interest rate swaps Fair value of foreign currency swaps and forwards. Fair value of interest rate hedging instruments Lease liabilities Gross borrowings Less: Cash and cash equivalents Net borrowings 2022 £ million 74 105 (19) - 248 - 1,115 (1) 1,522 - 516 413 495 430 430 618 515 731 498 643 430 600 411 298 819 298 645 821 856 614 395 770 331 491 595 409 407 293 (274) 14,498 16,020 2021 E million 112 160 98 769 719 4 1,862 215 970 511 360 431 426 425 537 510 723 497 637 426 594 358 711 298 714 850 534 395 288 427 356 353 253 66 12,865 14,727 (367) 11 283 475 16,422 14,858 (2,285) (2,749) 14,137 12,109 (154) (15) (63) 363

Answer rating: 100% (QA)

Given the information provided The 500 million 175 bond was issued in 2024 and is due in 2026 The st... View the full answer