Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.Coupon RateMaturityFace Value$8.90%Bond1236.808.609.20Aftertax cost of debtPrice Quote106.893.4105.896.5%4 years6 years14.5 years25 yearsIf the corporate tax rate is 25 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., 32.16.28,000,00031,000,00036,000,00055,000,000

Bond1234Coupon rate8.90%6.80%8.60%9.20%Face value$28,000,000$31,000,000$36,000,000$55,000,000Price…

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. 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
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Coupon Rate Maturity Face Value $ 8.50% Bond 1 2 3 4 6.70 8.20 8.70 Aftertax cost of debt Price Quote 105.5 94.9 104.3 106.2 % 5 years 8 years 15.5 years 25 years If the corporate tax rate is 25 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. 25,000,000 45,000,000 50,000,000 65,000,000
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
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 2 1234 3 Coupon Rate 8.90% 6.90 8.60 9.10 Aftertax cost of debt Price Quote 106.4 94.0 105.2 95.0 % 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? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Face Value $ 23,000,000 35,000,000 40,000,000 55,000,000
Cote 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 7.50 % 9.00 8.70 8.30 Cost of debt Price Quote 103.48 110.80 110.15 103.05 Maturity 5 years 8 years % 15.5 years 25 years 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.) Face Value $ 45,000,000 40,000,000 50,000,000 65,000,000
Ying Import has several bond issues outstanding, each making semiannual Interest payments. The bonds are listed in the following table. If the corporate tax rate is 31 percent, what is the aftertax cost of Ying's debt? (Do not round your intermediate calculations.) Bond Coupon Rate Price Quote 102 111 103 116 1234 4 6.3% 7 6.1 6.8 4.19% 5.78% 3.79% 3.83% 3.99% Maturity 7 years 12 years 21.5 years 32.5 years Face Value $ 21,000,000 40,000,000 47,000,000 58,000,000
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 5.7% 105.46 5 years 53,000,000 234 7.3 114.22 8 years 48,000,000 7.2 112.77 15.5 years 68,000,000 6.5 102.01 25 years 75,000,000 If the corporate tax rate is 23 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 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.
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% 6.60 8.60 9.10 Price Quote 105.4 95.0 104.2 106.1 Maturity 3 years 6 years 13.5 years Face Value $ 24,000,000 44,000,000 49,000,000 23 years 64,000,000 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. Aftertax cost of debt %
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 8.90% 105.9 3 years $ 29,000,000 2 6.40 94.5 6 years 49,000,000 3 8.60 104.7 13.5 years 54,000,000 4 9.10 94.5 23 years 69,000,000 If the corporate tax rate is 24 percent, what is the aftertax cost of the company’s debt?
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 8.50% 106.0 5 years $19,000,000 2 6.50 94.4 8 years 39,000,000 3 8.20 104.8 15.5 years 44,000,000 4 8.70 94.6 25 years 59,000,000 If the corporate tax rate is 25 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.)
Use the following data to calculate the Cost of Debt for the bond issues of Martin Corporation (one perecentage that represents the after tax cost for all the debt). Tax Rate = Face Value Current Price Coupon Rate Coupon payments per year Years remaining until maturity 20% Bond #1 $ 200,000,000 106.50 6.20% 2 12 Bond #2 $ 180,000,000 99.20 5.30% 2 15

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