KeySpan Corp. is planning to issue debt that will mature in 2035. In many respects, the issue is similar to the currently outstanding debt of the corporation. Use Table 11-3.

a.	Calculate the yield to maturity on similarly outstanding debt for the firm, in terms of maturity. (Input your answer as a percent rounded to 2 decimal places.)

Yield

%

Assume that because the new debt wil be issued at par, the required yield to maturity will be .15 percent higher than the value determined in part a.

b.	What is the new yield to maturity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Yield

%

c.	If the firm is in a 30 percent tax bracket, what is the aftertax cost of debt for the yield determined in partb? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Aftertax cost of debt

%

Maturity Date (MM/ Yield To 52-Week 52-Week S&P Coupon Maturity Low High Sales Current Company Ticker CUSIP Issue Rating DD/YYYY) C Callable Industry % Price Price Price Yield KeySpan N/A 49337WAC4Nt A- 11/15/2030 Yes N/A 8.004.99 130.30 144.07 135.65 5.89 Corp KeySpan N/A 49337WAH3Nt A-04/01/2033 Yes N/A 5.88 4.98 107.79 121.25 111296 5.27 Corp KeySpan N/A 49337WAJ9Nt A- 04/01/2035 Yes N/A5.80 4.73 106.53 119.47 114.63 5.06 Corp Source: S&P Capital IQ Net Advantage, September 22, 2012