3.

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 34 percent, what is the aftertax cost of Yings debt?

Bond	Coupon Rate	Price Quote	Maturity	Face Value
1	6.25%	107.85	5 years	40,000,000.00
2	4.25%	112.38	4 years	50,000,000.00
3	5.00%	98.78	12 years	100,000,000.00

Select one:

a. 4.01%

b. 3.91%

c. 3.76%

d. 3.13%

e. 4.19%