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Keyspan corp. is planning to issue debt that will mature in 2030. In many respects, the issue is similar to the currently outstanding debt of

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Keyspan corp. is planning to issue debt that will mature in 2030. 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 4.71% Assume that because the new debt will be issued at par, the required yield to maturity will be 0.25 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 25 percent tax bracket, what is the aftertax cost of debt for the yield determined in port ? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) c. If the firm is in a 25 percent tax bracket, what is the aftertax cost of debt for the yield determined in part b? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Altertax cost of debt 1% Autouts Current Cart SU ottet Date Maisy Date - 15:00 Br-01-2013 01-3035 Corporation Keypan Corporation an Corporation Security Type Corporate entre Corporate Debentures Corporate antes Seniority Senior Uncated Senior Unsecured Senior Unsecured Coupon 5.000 5.075 5.103 Apt-01-2003 M2005 50.00 150:00 307.30 131.0 117,973.950 11213

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