Shaw Communications is planning to issue debt that will mature in the year 2039. In many respects the issue is similar to currently outstanding debt of the corporation. Using Table 11-2 in the chapter, identify

Table 11.2

a. The yield to maturity on similarly outstanding debt for the firm, in terms of maturity.
b. Assume that because the new debt will be issued at par, the required yield to maturity will be 0.15 percent higher than the value determined in part a. Add this factor to the answer in a. (New issues at par sometimes require a slightly higher yield than old issues that are trading below par. There is less leverage and fewer tax advantages.)
c. If the firm is in a 30 percent tax bracket, what is the aftertax cost of debt?

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Rating (AAA = lowest risk) Interest Issuer Payable Maturity Price Yield 99.65 Canada 1.250% Mar. 2018 1.35 AAA 1.77 10.50 Mar. 2021 155.11 AAA 9.00 June 2025 164.88 2.27 AAA 1.949 Арт, 2018 Nav Canada 100.07 1.93 2.59 4.397 Feb, 2021 110.96 AA Apг. 2021 Oct. 2042 A (low) A (low) TELUS 3.20 101.65 2.98 4.40 96.33 4.63 Shaw Com. 5.70 Mar. 2017 109.61 2.01 Вв 4.35 Jan. 2024 103.60 3.86 BBB Nov. 2039 6.75 121.67 5.20 BBB Bombardier 7.35 Dec. 2026 107.50 6.47 BB 10 years CCC Greece 5.95