Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds arelisted in the table below.Bond1212343Coupon Rate8.90%6.908.609.10Aftertax cost of debtPrice Quote106.494.0105.295.0%Maturity3 years6 years13.5 years23 yearsIf 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 decimalplaces, e.g., 32.16.Face Value$ 23,000,00035,000,00040,000,00055,000,000

Yield to maturity is the rate of return that the bondholders will get if they invest and bond and…

Answered: Ying Import has several bond issues…

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

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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 1234 Maturity Face Value 6.4% 106.36 6 years 44,000,000 7.9 114.92 9 years 39,000,000 7.6 113.47 16.5 years 59,000,000 7.2 102.71 26 years 66,000,000 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.) Cost of debt %
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 6.9% 8.4 8.1 7.7 106.86 115.42 113.97 103.21 Cost of debt 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.) 49,000,000 44,000,000 64,000,000 71,000,000
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