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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 2 3 4 Coupon Rate 8.90% 6.60 8.60 9.10 Price Quote 105.4 95.0 104.2 106.1 Maturity 3 years 6 years 13.5 years Face Value $ 24,000,000 44,000,000 49,000,000 23 years 64,000,000 If the corporate tax rate is 24 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 %

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 2 3 4 Coupon Rate 8.90% 6.60 8.60 9.10 Price Quote 105.4 95.0 104.2 106.1 Maturity 3 years 6 years 13.5 years Face Value $ 24,000,000 44,000,000 49,000,000 23 years 64,000,000 If the corporate tax rate is 24 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 %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 2 3 4 Coupon Rate 8.90% 6.60 8.60 9.10 Price Quote 105.4 95.0 104.2 106.1 Maturity 3 years 6 years 13.5 years Face Value $ 24,000,000 44,000,000 49,000,000 23 years 64,000,000 If the corporate tax rate is 24 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 %
Transcribed Image Text:Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 2 3 4 Coupon Rate 8.90% 6.60 8.60 9.10 Price Quote 105.4 95.0 104.2 106.1 Maturity 3 years 6 years 13.5 years Face Value $ 24,000,000 44,000,000 49,000,000 23 years 64,000,000 If the corporate tax rate is 24 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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