Question
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote Maturity Face Value 1 8.90 % 105.4 3 years $ 24,000,000 2 6.60 95.0 6 years 44,000,000 3 8.60 104.2 13.5 years 49,000,000 4 9.10 106.1 23 years 64,000,000 If the corporate tax rate is 35 percent, what is the aftertax cost of the companys debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
I've been able to calculate weights and am having difficulty finding # of periods needed to fill the rate function in excel:
Weight
1: 25296000--.135958
2: 41800000-- .224661
3: 51058000-- .27442
4: 67904000-- .364961
Total Market Value: 186058000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started