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In: Accounting

Does Amazon issue bonds? If so, what are the characteristics of these bonds and do you...

Does Amazon issue bonds? If so, what are the characteristics of these bonds and do you feel that they borrow too much, too little or just about right? Why?

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SOLUTION

AMOZON ISSUES 16 MILLION DOLLAR bonds having redemption time of 40 years to fund WHOLE FOOD ACQUISITION .. Previous to this Amazon issued bond of 5 to 30 years in year 2014 .

Based on latest financial disclosures Amazon have total debt of 74.59 billion dollars .

Characteristics of bonds issued by AMOZON are as follows

- Face value of bond is 100

- Bonds are long term in nature usually from 5 years to 40 years

- Interest is payable regular in nature

AMOZON debt to equity ratio is . 98: 1 as per March 2020 . That means debts are more than equity , it will genrate low divided for share holders , so AMOZON have high leverage .


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