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Keyspan corp. is planning to issue debt that will mature in 2,035. In many respects, the issue is similar to the currently outstanding debt of the corporation. Use Table 11-3. a. Calculate the yield to maturity on similarly outstanding debt for the firm, in terms of maturity. (Input your answer as a percent rounded to 2 decimal places.) Yield Assume that because the new debt wil be issued at par, the required yield to maturity will be .25 percent higher than the value determined in part a b. What is the new yield to maturity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Yield % c. If the firm is in a 30 percent tax bracket, what is the aftertax cost of debt for the yield determined in part b? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Aftertax cost of debt Table 11-3 Excerpt from S&P Capital IQ Net Advantage Maturity Date (MM/ DD/YYYY) Yield To 52-Week 2-Week Sales Current S&P Coupon Maturity Low High Callable Ind ustry Company Ticker CUSIP Issue % Price Price Price Yield 8.00 KeySpan Corp. N/A 49337WAC4 Nt 11/15/2030 Yes N/A 4.57 N/A 0.00 138.075 5.79 04/01/2030 5.88 N/A KeySpan N/A 49337WAH3 Nt Yes N/A 4.35 0.00 118.919 4.94 Corp 4.32 0,00 KeySpan N/A 49337WAJ9 Nt 04/01/2035 Yes N/A 5.80 N/A 119.662 4.84 Corp

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