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.
Coupon Rate
Face Value
$
8.90%
Bond
1
234
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
29,000,000
49,000,000
54,000,000
69,000,000
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.
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