Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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
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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 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
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