Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.Bond1Coupon Rate8.80%Price QuoteMaturity4 yearsFace Value$28,000,0007 years48,000,00014.5 years24 years53,000,00068,000,0002347.008.509.00105.894.6104.6106.5If the corporate tax rate is 23 percent, what is the aftertax cost of the company's debt?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.Aftertax cost of debt%

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Answered: Ying Import has several bond issues…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Maturity 6 years 9 years 16.5 years Face Value $ 26,000,000 46,000,000 51,000,000 26 years 66,000,000 Bond 1 2 3 Coupon Rate 8.60% 6.80 8.30 8.80 Aftertax cost of debt Price Quote 105.6 94,8 104.4 106.3 If the corporate tax rate is 21 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. 6.53 %
e1
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