PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 7, Problem 1FPE
Summary Introduction
To explain: Options for education loan
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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
Coupon Rate
8.80%
Price Quote
Maturity
4 years
Face Value
$
28,000,000
7 years
48,000,000
14.5 years
24 years
53,000,000
68,000,000
234
7.00
8.50
9.00
105.8
94.6
104.6
106.5
If 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
%
Chapter 7 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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