Aftertax cost of ying debt

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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 30 percent, what is the aftertax cost of Ying's debt? (Do not round your intermediate calculations.)

Bond

Coupon Rate

Price Quote

Maturity

YTM

Face Value

1 6.1%      102      8 years        5.78% $ 23,000,000   
2 7.1%         108      11 years        6.09% $41,000,000   
3 6%         100      26 years        6% $47,000,000   
4 7.1%         111      38 years        6.33% $63,000,000   
  • 4.28%
  • 4.11%
  • 4.07%
  • 6.12%
  • 4.5%

Reference no: EM131017988

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