A. Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed...

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Finance

A.
Ying Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable.
Bond Coupon Rate Price Quote Maturity Face Value
1 6.5 % 106.46 5 years $ 45,000,000
2 8.0 115.02 8 years 40,000,000
3 7.7 113.57 15.5 years 60,000,000
4 7.3 102.81 25 years 67,000,000
If the corporate tax rate is 25 percent, what is the aftertaxcost of the company’s debt? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)
B.
The Woods Co. and the Speith Co. have both announced IPOs at $50per share. One of these is undervalued by $9, and the other isovervalued by $2, but you have no way of knowing which is which.You plan to buy 400 shares of each issue. If an issue isunderpriced, it will be rationed, and only half your order will befilled.
A. What profit do you actually expect? (Do not roundintermediate calculations.)

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A.Ying Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable.BondCoupon RatePrice QuoteMaturity Face Value16.5%106.465years$45,000,00028.0115.028years40,000,00037.7113.5715.5years60,000,00047.3102.8125years67,000,000If the corporate tax rate is 25 percent, what is the aftertaxcost of the company’s debt? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)B.The Woods Co. and the Speith Co. have both announced IPOs at $50per share. One of these is undervalued by $9, and the other isovervalued by $2, but you have no way of knowing which is which.You plan to buy 400 shares of each issue. If an issue isunderpriced, it will be rationed, and only half your order will befilled.A.What profit do you actually expect? (Do not roundintermediate calculations.)

Bond	Coupon Rate			Price Quote		Maturity		Face Value
1		6.5	%		106.46	5	years	$	45,000,000
2		8.0			115.02	8	years		40,000,000
3		7.7			113.57	15.5	years		60,000,000
4		7.3			102.81	25	years		67,000,000