Rappaport Industries has 6,250 perpetual bonds outstanding with a face value of $2,000 each. The bonds have a coupon rate of 6.0 percent and a yield to maturity of 6.3 percent. The tax rate is 35 percent. What is the present value of the interest tax shield?

Charter Corp. has issued 1,554 debentures with a total principal value of ​$1,554,000. The bonds have a coupon interest rate of 9​%. a.  What dollar amount of interest per bond can an investor expect to receive each year from​ Charter? b.  What is​ Charter's total interest expense per year associated with this bond​ issue?   c.  Assuming that Charter is in a 39​% corporate tax​ bracket, what is the​ company's net​ after-tax interest cost associated with this bond​ issue?

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond 1 2 3 4 Coupon Rate Price Quote 5.1% 6.7 Cost of debt 6.6 5.9 104.86 113.62 112.17 101.41 Maturity 5 years 8 years 15.5 years 25 years % Face Value $ If the corporate tax rate is 24 percent, what is the aftertax cost of the company's debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 59,000,000 54,000,000 74,000,000 81,000,000

Suppose ABE Co. issued a 20-year, 8 percent coupon rate bond three years ago. The bond is currently selling for $715.21. The bond has $1,000 face value and pays interests annually. If ABE’s tax rate is 30 percent, what is the firm’s after-tax cost of debt?