Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 2 3 4 Coupon Rate 8.90% 6.40 8.60 9.10 Price Quote 105.9 94.5 104.7 94.5 Maturity 3 years 6 years. 13.5 years 23 years If the corporate tax rate is 24 percent, what is the aftertax cost of the company's debt?
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need help solving in excel pls pls.
![Problem 12-22 Calculating the Cost of Debt [LO2]
Ying Import has several bond issues outstanding, each making semiannual interest
payments. The bonds are listed in the table below.
Bond
1
2
3
Coupon Rate
8.90%
Aftertax cost of debt
6.40
8.60
9.10
Price Quote
105.9
94.5
%
104.7
94.5
If the corporate tax rate is 24 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
3 years
6 years
13.5 years
23 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F483c3d17-1621-47af-bfd2-86acecf64938%2F496519c8-7bcf-4c3b-b9c3-94a1fd977539%2Fo04cqd_processed.png&w=3840&q=75)
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- Problem 14-24 Calculating the Cost of Debt (LO3) Cote Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Price Bond Coupon Rate Quote 1 7.00 % 2 8.50 103.38 110.70 Maturity 5 years Face Value $ 45,000,000 3 8.20 8 years 110.05 15.5 years 40,000,000 4 7.80 102.95 25 years 50,000,000 65,000,000 If the corporate tax rate is 34%, what is the after-tax cost of the company's debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt %Problem 14-24 Calculating the Cost of Debt (LO3) Cote Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote 1 7.50 % 103.24 Maturity 5 years Face Value $ 45,000,000 2 9.00 110.56 8 years 40,000,000 3 8.70 4 8.30 109.91 15.5 years 102.81 25 years 50,000,000 65,000,000 If the corporate tax rate is 34%, what is the after-tax cost of the company's debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt %Problem 7-16 Comparing Bond Yields (LG7-6) A client in the 39 percent marginal tax bracket is comparing a municipal bond that offers a 4.5 percent yield to maturity and a similar- risk corporate bond that offers a 6.45 percent yield. Determine the equivalent taxable yield. Note: Round your answer to 2 decimal places. Which bond will give the client more profit after taxes? Equivalent taxable yield Which bond will give the client more profit after taxes? %
- Problem 14-22 Calculating the Cost of Debt [LO2] Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond 1 234 Coupon Rate Price Quote 5.9% 7.5 7.4 6.7 105.66 114.42 112.97 102.21 Cost of debt Maturity 5 years 8 years 15.5 years 25 years If the corporate tax rate is 21 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.) % Face Value $ 51,000,000 46,000,000 66,000,000 73,000,000Chapter 7 The Valuation and Characteristics of Bonds 325 PROBLEMS Assume All Bonds Pay Interest Semiannually. Finding the Price of a Bond: Concept Connection Example 7-1 (page 295) 1. The Altoona Company issued a 25-year bond 5 years ago with a face value of $1,000. The bond pays interest semiannually at a 10% annual rate. a. What is the bond's price today if the interest rate on comparable new issues is 12%? b. What is the price today if the interest rate is 8%? c. Explain the results of parts (a) and (b) in terms of opportunities available to investors. d. What is the price today if the interest rate is 10%? e. Comment on the answer to part (d). oluo hond under the following conl:4:. hor5 Problem 6-2 Determinants of Interest Rates for Individual Securities (LG6-6) You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 1.30 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: 0 ences Real risk-free rate= 0.70% Default risk premium = 1.20% Liquidity risk premium= 0.60% Maturity risk premium = 1.80% a. What is the inflation premium? (Round your answer to 2 decimal places.) Expected IP b. What is the fair interest rate on Moore Corporation 30-year bonds? (Round your answer to 2 decimal places.)
- Problem 12-22 Calculating the Cost of Debt [LO2] Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote Maturity Face Value 1 8.60% 106.1 6 years $ 20,000,000 2 6.60 94.3 9 years 38,000,000 3 8.30 104.9 16.5 years 43,000,000 4 8.80 94.7 26 years 58,000,000 If the corporate tax rate is 21 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.Problem 9-24 Treasury Bills (LO1, CFA1) A Treasury bill that settles on May 18, 2022, pays $100,000 on August 21, 2022. Assuming a discount rate of 3.32 percent, what are the price and bond equivalent yield? Use Excel to answer this question. Note: Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places. Answer is complete but not entirely correct. $ 99,147.64 1.665 Price Bond equivalent yield %Problem 14-22 Calculating the Cost of Debt [LO2] Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Coupon Bond Rate Price Quote Maturity Face Value 1 6.1% 106.06 5 years $ 41,000,000 234 7.6 114.62 8 years 36,000,000 7.3 113.17 15.5 years 56,000,000 6.9 102.41 25 years 63,000,000 If the corporate tax rate is 21 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.) Cost of debt %
- #3 Cost of debt 3. Cost of debt. Kenny Enterprises has just issued a bond with a par value bf $1,000, a maturity of twenty years, and an 8% coupon rate with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. $920 b. $1,000 c. $1,080 d. $1,173Chapter 10 HW Saved 2 Part 1 of 4 4.16 points ! Required Information P10-9 (Algo) Recording and Reporting Bonds Issued at a Premium LO10-5 [The following Information applies to the questions displayed below.] Cron Corporation is planning to issue bonds with a face value of $890,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of Interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. eBook References P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue priceProblem 14-7 Calculating Cost of Debt (LO3) Pearce's Cricket Farm issued a 30-year, 9% semiannual bond 5 years ago. The bond currently sells for 93% of its face value. The company's tax rate is 20%. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Pre-tax cost of debt 5.995 % b. What is the after-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) After-tax cost of debt 4.796 % c. Which is more relevant, the pre-tax or the after-tax cost of debt? After-tax cost of debt Pre-tax cost of debt