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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. If the corporate tax rate
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.
If the corporate tax rate is 34 percent, what is the aftertax cost of the companys debt?
bond | coupon rate | maturity | face value | price quote |
1 | 6.5 | 5years | $30,000,000 | 105.0 |
2 | 5.3 | 8 | 50,000,000 | 95.4 |
3 | 6.9 | 15.5 years | 65,000,000 | 103.8 |
4 | 7.3 | 25 years | 85,000,000 | 105.7 |
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