Dollar Debt Issue Analysis

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Questions and Answers

What is the estimated all-in cost for the Canadian dollar debt if SaskPower had originally issued it?

  • 9.195%
  • 8.50% (correct)
  • 11.671%
  • 9.80%

How much of the $50 million debt issue was hedged by currency swaps?

  • $8 million
  • $70 million
  • $42 million (correct)
  • $75 million

What was the interest rate for the $194 million debt issue due on March 15, 2008?

  • 9.375%
  • 6.625%
  • 7.375%
  • 7.125% (correct)

When was the $100 million debt issue with an interest rate of 9.375% due to mature?

<p>December 15, 2020 (C)</p> Signup and view all the answers

What is the would-be hedged all-in cost for Canadian dollar debt according to the provided information?

<p>9.120% (D)</p> Signup and view all the answers

Based on the text, which debt issue had an interest rate of 8.500% and was due on July 15, 2022?

<p>$200 million July 15, 2022 (C)</p> Signup and view all the answers

What was SaskPower's average all-in cost of its U.S. debt compared to the equivalent Canadian dollar debt?

<p>17% lower (A)</p> Signup and view all the answers

Why did SaskPower choose to issue U.S. dollar debt instead of Canadian dollar debt?

<p>To benefit from a lower U.S. dollar cost of servicing the debt (A)</p> Signup and view all the answers

What impact did the depreciation of the Canadian dollar have on the valuation of SaskPower's U.S. debt?

<p>Increased unrealized foreign exchange losses (C)</p> Signup and view all the answers

What was the approximate breakeven US dollar rate for the July 20, 1993 issue?

<p>9.06% (B)</p> Signup and view all the answers

What type of investors primarily held SaskPower's U.S. dollar debt?

<p>Institutional investors (A)</p> Signup and view all the answers

How much of the US$75 million issued on July 15, 2013 was hedged by currency swaps?

<p>US$75 million (B)</p> Signup and view all the answers

How were foreign exchange translation adjustments on SaskPower's U.S. debt handled under the Canadian accounting standard?

<p>Amortized over the remaining term of the debt (B)</p> Signup and view all the answers

What was the all-in cost at issue for the US$200 million debt on July 15, 2022?

<p>8.60% (B)</p> Signup and view all the answers

What characteristic did SaskPower's U.S. dollar debt have in terms of callability and convertibility?

<p>Non-callable and non-convertible (B)</p> Signup and view all the answers

Which debt issue had an estimated all-in cost for CA$ debt at issue of CA$1.33?

<p>December 20, 1990 (D)</p> Signup and view all the answers

On which date did SaskPower issue debt with a US$ rate at issue of 7.55%?

<p>July 20, 1993 (D)</p> Signup and view all the answers

What percentage of the US$194 million issued on March 15, 2008 was hedged by coupon swaps?

<p>38% (C)</p> Signup and view all the answers

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