The Ralston Road Warriors have issued four bonds which are listed in the following table. If the corporate tax rate is 33 percent, what is the company's after-tax cost of debt (NOTE: you don't need to convert rates from an APR to an EAR) (Do not round your intermediate calculations.) 

 

Bond	Coupon Rate	Yield to Maturity	Price Quote (% of Face Value)	Maturity	Face Value
1	5.90%	5.59%	102%	8 years	$ 20,000,000
2	7.10%	5.77%	110%	10 years	$ 35,000,000
3	5.90%	5.66%	103%	22 years	$ 42,000,000
4	6.80%	5.69%	117%	36 years	$ 59,000,000

 

Answer rating: 100% (QA)

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