Thank you for clarifying the distinction between Yield to Maturity (YTM) and the annual coupon rate. You may be right regarding the current coupon rate being below the aggregate cost of borrowing at 10.7%.
However, I noticed that previous bonds were trading at less than 11% YTM, whereas these new bonds are now offering an 11.5% YTM. Doesn’t this indicate an increase in the cost of borrowing compared to past issuances? This higher YTM could reflect a shift in market conditions or perhaps a change in U Gro’s funding strategy.
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