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

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Finance

Ying Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable. If the corporate tax rate is 33 percent, what is theaftertax cost of Ying's debt?

Bond
Coupon Rate
Price Quote
Maturity
Face Value
1 5.9%      108      3 years        $ 19,000,000
2 6.5         116      6 years        37,000,000
3 5.7         111      16 years        40,000,000
4 6.6         126      30 years        56,000,000

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Number of bonds FVpar value Bond 119000000100019000 Bond 237000000100037000 Bond 340000000100040000 Bond 456000000100056000 Bond 1 K Nx2 Bond Price Coupon1 YTM2k Par value1 YTM2Nx2 k1 K 3x2 1080 5910002001 YTM200k 10001 YTM2003x2 k1 YTM 309 Bond 2 K Nx2 Bond Price Coupon1 YTM2k Par value1 See Answer

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Transcribed Image Text

Ying Import has several bond issues outstanding, each makingsemiannual interest payments. The bonds are listed in the followingtable. If the corporate tax rate is 33 percent, what is theaftertax cost of Ying's debt? BondCoupon RatePrice QuoteMaturityFace Value15.9% 108 3 years $ 19,000,000 26.5 116 6 years 37,000,000 35.7 111 16 years 40,000,000 46.6 126 30 years 56,000,000

Bond	Coupon Rate	Price Quote	Maturity	Face Value
1	5.9%	108	3 years	$ 19,000,000
2	6.5	116	6 years	37,000,000
3	5.7	111	16 years	40,000,000
4	6.6	126	30 years	56,000,000