Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.   BondCoupon...

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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.

 

BondCoupon RatePrice QuoteMaturityFace Value
1   8.60%106.1  6 years$20,000,000  
26.6094.39 years38,000,000
38.30  104.9    16.5 years    43,000,000
48.8094.7  26 years58,000,000

 

Required:

If the corporate tax rate is 30 percent, what is the aftertax cost of the company’s debt?

    • 10 years ago
    • 999999.99
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