Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Maturity Coupon Rate 8.80% 4 years 7 years 14.5 years Face Value $ 22,000,000 36,000,000 41,000,000 24 years 56,000,000 Bond 1 2 3 4 6.80 8.50 9.00 Aftertax cost of debt 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. Price Quote 106.3 94.1 105.1 94.9 %
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Maturity Coupon Rate 8.80% 4 years 7 years 14.5 years Face Value $ 22,000,000 36,000,000 41,000,000 24 years 56,000,000 Bond 1 2 3 4 6.80 8.50 9.00 Aftertax cost of debt 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. Price Quote 106.3 94.1 105.1 94.9 %
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
Related questions
Question
![Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.
Coupon Rate
8.80%
Face Value
$ 22,000,000
36,000,000
41,000,000
56,000,000
Bond
1
2
3
4
6.80
8.50
9.00
Aftertax cost of debt
Price Quote
106.3
94.1
105.1
94.9
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.
%
Maturity
4 years
7 years
14.5 years
24 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccf3e76f-d47d-4ec1-acc8-589ea57cc10e%2Fff5af52e-edab-45cc-8712-a6a7f2c706dd%2Ftbkiygj_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 table below.
Coupon Rate
8.80%
Face Value
$ 22,000,000
36,000,000
41,000,000
56,000,000
Bond
1
2
3
4
6.80
8.50
9.00
Aftertax cost of debt
Price Quote
106.3
94.1
105.1
94.9
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.
%
Maturity
4 years
7 years
14.5 years
24 years
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