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Ratin turity Date Nov-15-2020 Apr-01-3033 AD1035 Tau Neyman Dotporation Keypan Corporation Xayapan Corporation Security Corporate bent Corporate Debentures Corporate Debent Atoutstaurant Current nority Coupon of

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Ratin turity Date Nov-15-2020 Apr-01-3033 AD1035 Tau Neyman Dotporation Keypan Corporation Xayapan Corporation Security Corporate bent Corporate Debentures Corporate Debent Atoutstaurant Current nority Coupon of TO HERO 150.00 31.05.10 150.00 Senior 00 30720 117,97 BOB 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 will be issued at par, the required yield to maturity will be 0.20 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 part b? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) % Altertax cost of debt Tating Maturity Date Nov-15-3030 Apr-01-2033 A-01-2035 Tue Royapan corporation Kayspan Corporation HOYEAR COUPE Security Type Corporate Doberds corporate Debestures Corporate Detention Seniority Coupon Sentiot Unsecured 2000 Senior Unsecured 5.975 Senin.Becured SABO ottet Date Nov 12000 Apr-01-2005 MAR-2005 Autoutstd. Current Current Price 350.00 1312 4110 150.00 117.33 1.250 30720 117373 35+

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