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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 32 percent, what is the aftertax cost of Ying's debt? Bond 1 ~ 34 2 Coupon Rate 6.4% 7.2 5.8 6.5 Price Quote Maturity 105 114 106 121 7 years 10 years 21 years 33 years Face Value $ 20,000,000 42,000,000 49,000,000 55,000,000
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