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?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Millon Cornett
1st International Edition
0071181334, 9780071181334
