Ying Imports has several bond issues outstanding, each making semi-annual interest payments called coupons. These interest payments represent an annuity, and though paid semi-annually, they are quoted as an annual percent of face value. The face value represents the amount that must be repaid when the loan matures, and is usually equal to the original amount borrowed. Hence a 10% annual coupon typically means that the company has a 10% annual percentage Interest rate (APR) on their loan, and pays off the Interest every six months by paying 5% Interest on the face value. The current market price of a bond (.e. what a bank would be willing to sell the loan for) is usually also quoted as a percent of face value. The yield to maturity represents the discount rate that sets the present value of the bond's cash flows (the coupons and the repayment of face value at maturity) equal to the bond's price. Since the coupons are paid semi-annually, this yield is quoted as an APR with semi-annual compounding Just like the coupons. Ying Imports' bonds are listed in the following table. If the corporate tax rate is 34 percent, what is the after-tax cost of Ying Imports' debt (leave your answer as an APR)? (Do not round your intermediate calculations.) ces Bond Coupon Rate Yield to Maturity Maturity 1 2 | 6.00% 7.20% 5.90% 710% 5.65% 5.72% 5.65% 6.04% Price Quote (%of Face Value) 102% 112% 103% 115% 7 years 11 years 21 years 32 years Face Value $ 19,000,000 $ 39,000,000 $ 45,000,000 $ 61,000,000 3 4 Multiple Choice 4.03% 3.84% 5.82% Party 3.65% 3.69% Jiminy's Cricket Farm issued a 30-year, 7 percent coupon bond 4 years ago. The bond makes semi-annual coupon payments and sells for 92 percent of its face value. The face value of the debt issue is $21 million and the yield to maturity is 7.715%. Note: YTM for coupon bonds is quoted as an APR with semi-annual compounding. In addition, the company has a second debt issue on the market, a zero coupon bond with 4 years left to maturity: the face value of this issue is $79 million and the bonds sell for 77 percent of face value. Note: Zero-coupon bonds only make one payment: face value which is paid at maturity. Required: What is the company's total book value of debt? (Do not round your intermediate (a) calculations.) (Click to select) (b)What is the company's total market value of debt? (Do not round your intermediate calculations.) Click to select) (c) What is the pre-tax cost of debt for the zero coupon bond? Report this as an APR with semi-annual compounding. (Enter your answer as a percent, rounding to three decimals.) % (d)The company's tax rate is 34 percent. What is the company's after-tax cost of debt? Report this as an APR with semi-annual compounding. (Do not round your Intermediate calculations.) (Click to select) coupon bc makes semi-annual coupon payments and sells for 92 percen value of the debt issue is $21 million and the yield to maturi coupon bonds is quoted as an APR with semi-annual compour In addition, the company has a second debt issue on the ma with 4 years left to maturity, the face value of this issue is $79 for 77 percent of face value. Note: Zero-coupon bonds only value which is paid at maturity. Required: What is the company's total book value of debt? (Do not rour (a)ateulatione Click to selec 124,160,000 80,150,000 ny's total market value of debt? (Do notre 75,050,000 100,000,000 124,950,000 cost of debt for the zero coupon bond? Rep semi-annual compounding. (Enter your answer as a perce decimals.) ( % (d)The company's tax rate is 34 percent. What is the company's Report this as an APR with semi-annual compounding. intermediate calculations.) Click to select) miny's Cricket Farm issued a 30-year, 7 percent coupon bond 4 years ago akes semi-annual coupon payments and sells for 92 percent of its face valu lue of the debt issue is $21 million and the yield to maturity is 7715%. Noi Dupon bonds is quoted as an APR with semi-annual compounding. addition, the company has a second debt issue on the market, a zero Cou ith 4 years left to maturity; the face value of this issue is $79 million and the r 77 percent of face value. Note: Zero-coupon bonds only make one pay! Blue which is paid at maturity. equired: What is the company's total book value of debt? (Do not round your interme calculations.) Click to select) What is the company's total market value of debt? (Do not round your inter calentine Click to select 100,000,000 cost of debt for the zero coupon bond? Report this as an 83,356,000 punding. (Enter your answer as a percent, rounding 76,142,500 84,157,500 30,150,000 d)The company's tax rate is 34 percent What is the company's after-tax cost o Report this as an APR with semi-annual compounding. (Do not round intermediate calculations.) (Click to select) In addition, the company has a second debt issue on the market, a zero co with 4 years left to maturity; the face value of this issue is $79 million and the for 77 percent of face value. Note: Zero-coupon bonds only make one pay value which is paid at maturity. Required: What is the company's total book value of debt? (Do not round your interme (a) calculations.) (Click to select) (b)What is the company's total market value of debt? (Do not round your inte calculations.) (Click to select) (c) What is the pre-tax cost of debt for the zero coupon bond? Report this as an semi-annual compounding. (Enter your answer as a percent, rounding t decimals.) % (d) The company's tax rate is 34 percent. What is the company's after-tax cost of Report this as an APR with semi-annual compounding. (Do not round Welations.) Click to seler 3.45% 4.55% 5.18% 4.33% 4.93%