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 following table.
| Bond | Coupon Rate | Price Quote | Maturity | Face Value | |||||||||||
| 1 | 6.1 | % | 105.96 | 5 | years | $ | 41,000,000 | ||||||||
| 2 | 7.6 | 114.62 | 8 | years | 36,000,000 | ||||||||||
| 3 | 7.3 | 113.17 | 15.5 | years | 56,000,000 | ||||||||||
| 4 | 6.9 | 102.41 | 25 | years | 51,000,000 | ||||||||||
| If the corporate tax rate is 35 percent, what is the aftertax cost of the companys debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Cost of debt | % |
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