Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.
Bond
Coupon Rate
Maturity
Face Value.
$
8.60%
6.90
8.30
8.80
3
Aftertax cost of debt
Price Quote
105.1
95.3
103.9
105.8
%
6 years
9 years
16.5 years
26 years
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.
21,000,000
41,000,000
46,000,000
61,000,000
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