Question: There are some bonds shown as a negative yield. Explore why? (2) Calculate (estimate) the YTM of the bond TSLA4530907. Be sure to show your

There are some bonds shown as a negative yield. Explore why?

There are some bonds shown as a negative yield. Explore why? (2) Calculate (estimate) the YTM of the bond TSLA4530907. Be sure to show your work. You may assume the bonds are semiannual coupon bonds. Also know that the bond prices are expressed as percentage of par e.g. $101 means 101% of par value. (3) Compare the bond TSLA4530907 with TSLA4530906. Whats the difference between these two bonds? Why their YTM is different even though they both mature on the same day? (4) Ultimately, what is the estimated cost of debt you should use for Tesla?

Last Sale Ratings Moody's S&P Issuer Name Coupon Maturity Price Yield Symbol TSLA4474416 TESLA INC 2.375 03/15/2022 BB+ 1744.556 -329.248 TESLA INC TSLA4530906 5.300 08/15/2025 B3 NR 102.660 3.885 TESLA INC TSLA4830349 Callable Sub-Product Type Corporate Bond Yes Corporate Bond Corporate Bond Corporate Bond Corporate Bond Corporate Bond 2.000 05/15/2024 BB+ 1642.485 -86.827 TESLA INC TSLA4103350 0.250 03/01/2019 NR 99.130 105.438 TESLA INC TSLA4103351 1.250 03/01/2021 NR 1039.247 -3612.922 TESLA INC TSLA4530907 5.300 08/15/2025 102.680 Last Sale Ratings Moody's S&P Issuer Name Coupon Maturity Price Yield Symbol TSLA4474416 TESLA INC 2.375 03/15/2022 BB+ 1744.556 -329.248 TESLA INC TSLA4530906 5.300 08/15/2025 B3 NR 102.660 3.885 TESLA INC TSLA4830349 Callable Sub-Product Type Corporate Bond Yes Corporate Bond Corporate Bond Corporate Bond Corporate Bond Corporate Bond 2.000 05/15/2024 BB+ 1642.485 -86.827 TESLA INC TSLA4103350 0.250 03/01/2019 NR 99.130 105.438 TESLA INC TSLA4103351 1.250 03/01/2021 NR 1039.247 -3612.922 TESLA INC TSLA4530907 5.300 08/15/2025 102.680

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