Question
Ying Import has several bond issues outstanding, each making semi-annual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote
| Ying Import has several bond issues outstanding, each making semi-annual interest payments. The bonds are listed in the following table. |
| Bond |
| Coupon Rate |
| Price Quote | Maturity |
| Face Value |
| |||||||
| 1 |
|
| 6.1 | % |
|
| 106.06 |
|
| 5 | years |
| $ | 41,000,000 |
|
| 2 |
|
| 7.6 |
|
|
| 114.62 |
|
| 8 | years |
|
| 36,000,000 |
|
| 3 |
|
| 7.3 |
|
|
| 113.17 |
|
| 15.5 | years |
|
| 56,000,000 |
|
| 4 |
|
| 6.9 |
|
|
| 102.41 |
|
| 25 | years |
|
| 63,000,000 |
|
| If the corporate tax rate is 21 percent, what is the after-tax cost of the companys debt?
|
(Please do it quickly and accurte)
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
