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Table 11-3 Excerpt from S&P Capital IQ Net Advantage Maturity Date (MM/ Yield To 52-Week 2-Week Price N/A S&P Coupon Maturity Low High Sales Current
Table 11-3 Excerpt from S&P Capital IQ Net Advantage Maturity Date (MM/ Yield To 52-Week 2-Week Price N/A S&P Coupon Maturity Low High Sales Current Price Price Yield Company Ticker CUSIP Issue DD/YYYY) Callable Industry % KeySpan N/A 49337WAC4 Nt 11/15/2030 YesNA8.0 4.57 0.00 138.075 5.79 Corp KeySpan N/A 49337WAH3 Nt 04/01/2030 Yes N/A 5.88 4.35 N/A 0.00 118.919 4.94 Corp KeySpan N/A 49337WAJ9 Nt 04/01/2035 Yes N/A 5.80 4.32 N/A 0.00 119.662 4.84 Corp Keyspan corp. is planning to issue debt that will mature in 2,030. 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 wil be issued at par, the required yield to maturity will be.10 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 30 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.) Aftertax cost of debt
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