Question
1. Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price
1.
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. |
Bond | Coupon Rate | Price Quote | Maturity | Face Value |
1 | 8.50% | 106.0 | 5 years | $19,000,000 |
2 | 6.50 | 94.4 | 8 years | 39,000,000 |
3 | 8.20 | 104.8 | 15.5 years | 44,000,000 |
4 | 8.70 | 94.6 | 25 years | 59,000,000 |
Required: |
What is the market value of each of the company's bonds?(Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).) |
Bond | Market value |
1 | $ |
2 | $ |
3 | $ |
4 | $ |
What is the market value weight of each of the company's bonds?(Round your answers to 4 decimal places (e.g., 32.1616).) |
Bond | Weight |
1 | |
2 | |
3 | |
4 |
What is the YTM of each of the company's bonds?(Input your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Bond | YTM |
1 | % |
2 | % |
3 | % |
4 | % |
If the corporate tax rate is 34 percent, what is the aftertax cost of the companys debt?(Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Aftertax cost of debt | % |
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