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The Ralston Road Warriors have issued four bonds which are listed in the following table. If the corporate tax rate is 33 percent, what is

The Ralston Road Warriors have issued four bonds which are listed in the following table. If the corporate tax rate is 33 percent, what is the company's after-tax cost of debt (NOTE: you don't need to convert rates from an APR to an EAR) (Do not round your intermediate calculations.) 

 

 

Bond

Coupon Rate

Yield to Maturity

Price Quote

(% of Face Value)

Maturity

Face Value

15.90%     5.59%102%8 years       $ 20,000,000   
27.10%        5.77%110%     10 years       $ 35,000,000   
35.90%        5.66%103%     22 years       $ 42,000,000   
46.80%        5.69%117%     36 years       $ 59,000,000   


 

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