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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 Coupon Rate Price Quote Maturity Face Value $ 20,000,000 1 6.1% 108 2 3 4 6.8 6.3 7.6 113 104 115 3 years 7 years 21 years 36 years 37,000,000 43,000,000 62,000,000 S Multiple Choice 5.54% 3.62% O 3.96% O O 3.77% O O 3.58%
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