Question 15 Use the following data to calculate the Cost of Debt for the bond issues of the Barker Corp.(one perecentage that represents the after tax cost for all the debt). Face Value Current Price Coupon Rate Coupon payments per year Years remaining until maturity Tax Rate = 24% Bond #1 $ 780,000,000 98.00 4.50% 2 25 Bond #2 $ 420,000,000 102.75 5.30% 2 12 2

Use the following data to calculate the Cost of Debt for the bond issues of the Barker Corp. (one perecentage that represents the after tax cost for all the debt)