Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.
Bond
1
2
3
4
Coupon Rate
8.60%
6.90
8.30
8.80
Price Quote
105.1
95.3
103.9
105.8
Maturity
6 years
9 years
16.5 years
26 years
Face Value
$ 21,000,000
41,000,000
46,000,000
61,000,000
If the corporate tax rate is 21 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.
Answer is complete but not entirely correct.
Aftertax cost of debt
6.05
%