BABA (Alibaba Group Holding Limited)

  1. Using the debt ratios provided, write a few bullet points analyzing the relative creditworthiness of Alibaba

and its peers.

  1. Write a few bullet points justifying why credit rating agencies rate Alibaba’s debt higher/lower than its

peers.

  1. Calculate the yield-to-maturity on a Alibaba bond that matures in 14 years, pays a 7.0% coupon, semi-

annually, with a current price of $130.677. Assume the bond has a par value of $1,000.

4, Use the Bloomberg Terminal to find the yield to maturity on the same bond in question 3.

Explain the differences between your calculation and the Bloomberg Terminal result.