Q15

The Coca-Cola Company is planning to Issue debt that will mature In 2093. In many respects, the issue is similar to the currently outstanding debt of the corporation. Use Table 11-3. a. What is the yleld to maturity on similarly outstanding debt for the firm In terms of maturity. Note: Input your answer as a percent rounded to 2 decimal places. Answer is complete and correct. b. Assume that because the new debt will be Issued at par, the required yleld to maturity will be 0.16 percent higher than the value determined in part a. What is the new yleld to maturity? Note: Do not round Intermedlate 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 yleld determined in part b ? Note: Do not round Intermedlate calculations. Input your answer as a percent rounded to 2 decimal places