Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are...
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Accounting
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% | 106.2 | 7 years | $ 21,000,000 |
| 2 | 6.70 | 94.2 | 10 years | 37,000,000 |
| 3 | 8.40 | 105.0 | 17.5 years | 42,000,000 |
| 4 | 8.90 | 94.8 | 27 years | 57,000,000 |
If the corporate tax rate is 22 percent, what is the aftertax cost of the companys debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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