$15$

The Coca$-$Cola Company is planning to issue debt that will mature in $2093.$ In many respects, the issue is similar to the currently

outstanding debt of the corporation. Use Table $11-3.$

a$.$ What is the yield to maturity on similarly outstanding debt for the firm in terms of maturity.

Note: Input your answer as a percent rounded to $2$ decimal places.

Yield

$\%$

b$.$ Assume that because the new debt will be issued at par, the required yield to maturity will be $0\mathrm{.}12$ percent higher than the value

determined in part $a.$ What is the new yield to maturity?

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Yield

$\%$

$\%$

c$.$ If the firm is in a $25$ percent tax bracket, what is the aftertax cost of debt for the yield determined in part $b?$

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Aftertax cost of debt

$\%$