Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Coupon Rate Bond Price Quote Maturity Face Value 24 45,000,000 40,000,000 50,000,000 65,000,000 1 4.00% 103.18 5 years 8 years 15.5 years 25 years 2 6.10 112.80 3 5.30 107.45 4 4.90 102.75 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Coupon Rate Bond Price Quote Maturity Face Value 24 45,000,000 40,000,000 50,000,000 65,000,000 1 4.00% 103.18 5 years 8 years 15.5 years 25 years 2 6.10 112.80 3 5.30 107.45 4 4.90 102.75 If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 9FPE: Which of these two bonds offers the highest current yield? Which one has the highest yield to...
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![Ying Import has several bond issues outstanding, each making semiannual interest
payments. The bonds are listed in the following table.
Coupon
Bond
Rate
Price Quote
Maturity
Face Value
1
4.00%
103.18
5 years
45,000,000
40,000,000
50,000,000
65,000,000
112.80
8 years
15.5 years
25 years
2
6.10
3
5.30
107.45
4
4.90
102.75
If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt?
(Do not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g.., 32.16.)
Cost of debt
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2db349d-44e2-4dc0-ad50-be44fa6802da%2F576b5a87-78b0-4d9e-964f-87c60b57b3b7%2Fk7sx1t_processed.png&w=3840&q=75)
Transcribed Image Text:Ying Import has several bond issues outstanding, each making semiannual interest
payments. The bonds are listed in the following table.
Coupon
Bond
Rate
Price Quote
Maturity
Face Value
1
4.00%
103.18
5 years
45,000,000
40,000,000
50,000,000
65,000,000
112.80
8 years
15.5 years
25 years
2
6.10
3
5.30
107.45
4
4.90
102.75
If the corporate tax rate is 22 percent, what is the aftertax cost of the company's debt?
(Do not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g.., 32.16.)
Cost of debt
%
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