Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.Coupon Rate8.80%Face Value$ 22,000,00036,000,00041,000,00056,000,000Bond12346.808.509.00Aftertax cost of debtPrice Quote106.394.1105.194.9If the corporate tax rate is 23 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.%Maturity4 years7 years14.5 years24 years

Bonds are financial instruments representing debt obligations issued by entities, typically…

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 following table. If the corporate tax rate is 32 percent, what is the aftertax cost of Ying's debt? Bond Coupon Rate Price Quote Maturity Face Value 1 6.1% 104 4 years $17,000,000 234 7.2 111 7 years 38,000,000 6.3 104 16 years 46,000,000 7.3 115 26 years 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 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 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 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 following table. If the corporate tax rate is 32 percent, what is the aftertax cost of Ying's debt? Bond 1 2 3 4 Coupon Rate Price Quote 102 109 101 116 6.3% 7 6.1 7.2 4.24% 3.88% 3.84% 5.94% 4.04% Maturity 4 years 9 years 22 years 35 years Face Value $ 16,000,000 40,000,000 40,000,000 58,000,000
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate 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. 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
Cookies 'n Cream, Incorporated, recently issued new securities to finance a new TV show. The project cost $45 million, and the company paid $2.2 million in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the debt issued had a flotation cost of 2 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) Debt-equity ratio
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 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.)
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

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