Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.76 percent, a par value of $1,000 per bond, matures in 3 years, has a total face value of $4.9 million, and is quoted at 108 percent of face value. The second issue has a coupon rate of 6.53 percent, a par value of $1,000 per bond, matures in 17 years, has a total face value of $9.2 million, and is quoted at 105 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 35 percent. What is the firm's weighted average aftertax cost of debt?

Could you please do the YTM calc with a financial calculator please? I've been trying to get the process down for ages :(

I just want to know the process to get the YTM for each bond. here are is the solution also:

Explanation

Market value of debt = 1.08($4,900,000) + 1.05($9,200,000) Market value of debt = $5,292,000 + 9,660,000 Market value of debt = $14,952,000 YTM Bond 1 $1,080 = $37.60{1 [1/(1 + R)⁶]} / R + $1,000 / R⁶ R = .0207 YTM = 2.07% YTM Bond 2 $1,050 = $32.65{1 [1/(1 + R)³⁴]} / R + $1,000 / R³⁴ R = .0609 YTM = 6.09% Aftertax cost of debt = [2.07%($5,292,000/$14,952,000) + 6.09%($9,660,000/$14,952,000)](1 .35) Aftertax cost of debt = 3.03%