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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 | 5.7 | % | 105.56 | 5 | years | $ | 37,000,000 | ||||||||
2 | 7.2 | 114.22 | 8 | years | 32,000,000 | ||||||||||
3 | 6.9 | 112.77 | 15.5 | years | 52,000,000 | ||||||||||
4 | 6.5 | 102.01 | 25 | years | 47,000,000 |
If the corporate tax rate is 35 percent, what is the aftertax cost of Ying
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