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 Maturity Face Value 1 8.70% 105.2 7 years $ 22,000,000 2 7.00 95.2 18 years 42,000,000 3 8.40 104.0 17.5 years 47,000,000 4 8.90 105.9 27 years 62,000,000 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Aftertax cost of debt

          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
8.70%
105.2
7 years
$ 22,000,000
2
7.00
95.2
18 years
42,000,000
3
8.40
104.0
17.5 years
47,000,000
4
8.90
105.9
27 years
62,000,000
If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Aftertax cost of debt

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
8.70%
105.2
7 years
22,000,000
2
7.00
95.2
18 years
42,000,000
3
8.40
104.0
17.5 years
47,000,000
4
8.90
105.9
27 years
62,000,000
If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Aftertax cost of debt

Added by Joanna D.

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