Create a spreadsheet and write a 500-650 word essay addressing each of the following points/questions.

Title: Debt Securities & Interest Rates Essay

Create a spreadsheet and write a 500-650 word essay addressing each of the following points/questions. Be sure to completely answer all the questions for each bullet point. Separate each section in your paper with a clear heading that allows your professor to know which bullet you are addressing in that section of your paper. Support your ideas with at least three (3) sources in your essay. Make sure to reference the citations using the APA writing style for the essay. The cover page and reference page do not count towards the minimum word amount. Review the rubric criteria for this assignment.

Module 6 introduces a number of different types of debt security instruments. Identify at least three different categories of debt instruments, and compare and contrast them in terms of risk as well as potential for return.

The overall interest rate of a debt security consists of a number of different components. Identify each of the components, describe each, and explain why they form a part of the overall interest rate profile of the security.

Summarize your findings in a two to three page paper.

Problem: Capital Structure and the WACC

Percent Debt (%)

After-Tax Debt Cost (%)

Cost of equity (%)

0

—–

14

15

5

18

45

9

22

67

12

25

78

16

30

• Determine the WACC for each scenario
• Determine the optimal mix of debt and equity.
• Present your findings in a spreadsheet and provide the rationale for your answers.

Start by reading and following these instructions:

1. Study the required chapter(s) of the textbook and any additional recommended resources. Some answers may require you to do additional research on the Internet or in other reference sources. Choose your sources carefully.
2. Consider the discussion and the any insights you gained from it.
3. Review the assignment rubric and the specifications below to ensure that your response aligns with all assignment expectations.
4. Create your assignment submission and be sure to cite your sources, use APA style as required, and check your spelling.

The following specifications are required for this assignment:

• Length: Completed spreadsheet and a 500-650 word essay; answers must thoroughly address the questions in a clear, concise manner.
• Structure: Include a title page and reference page in APA style. These do not count toward the minimum word count for this assignment.
• References: Use the appropriate APA style in-text citations and references for all resources utilized to answer the questions. Include at least three (3) scholarly sources to support your claims.
• Format: Save your assignment as a Microsoft Excel document (.xls or .xlsx).
• Filename: Name your saved file according to your FirstInitialLast Name_CourseID_ModuleNumber (for example, “RHall_EDD820_M1.xlsx”).