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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote
| Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. |
| Bond | Coupon Rate | Price Quote | Maturity | Face Value | |||||||||||
| 1 | 5.9 | % | 105.66 | 5 | years | $ | 51,000,000 | ||||||||
| 2 | 7.5 | 114.42 | 8 | years | 46,000,000 | ||||||||||
| 3 | 7.4 | 112.97 | 15.5 | years | 66,000,000 | ||||||||||
| 4 | 6.7 | 102.21 | 25 | years | 73,000,000 | ||||||||||
| If the corporate tax rate is 21 percent, what is the aftertax cost of the companys debt? |
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