Input Area: Bond 2 AN Coupon Rate 4.00% 6.10% 5.30% 4.90% Price Quote 103.18 112.80 107.45 102.75 Maturity 5 8 15 25 669 $ $ $ $ Face value 45,000,000 40,000,000 50,000,000 65,000,000 4 Output Area: Bond 1 2 3 4 Market value $ 4,643,100,000 $ 4,512,000,000 $ 5,372,500,000 $ 6,678,750,000 $21,206,350,000 Weight 22% 21% 25% 31% 100% Total Bond 1 Bond 2 Bond 3 Input for RATE function NPER PMT PV (Price) FV(Assume $100 par) Bond 4 Pretax cost Aftertax cost E Pretax cost of debt Aftertax cost of debt Q8 (3 points) Cost of Debt Cookie 'n Cream Inc. has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 22%, what is the after-tax cost of the company's debt? Bond Coupon Rate Price Quote Maturity Face value 1 4.00% 103.18 5 years $ 45,000,000 2 6.10% 112.80 8 years $ 40,000,000 3 5.30% 107.45 15 years $ 50,000,000 4.90% 4 102.75 25 years $ 65,000,000