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Question 4: Ying Import has several bond issues outstanding, each making semi-annual interest payments. The bonds are listed in the following table. Bond % 1

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Question 4: Ying Import has several bond issues outstanding, each making semi-annual interest payments. The bonds are listed in the following table. Bond % 1 2 3 4 Coupon Rate 6.1 7.6 7.3 6.9 Price Quote Maturity Face Value 106.06 5 years $ 41,000,000 114.62 8 years 36,000,000 113.17 15.5 years 56,000,000 102.41 25 years 63,000,000 If the corporate tax rate is 21 percent, what is the after-tax cost of the company's debt? (6 Marks)

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