Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed...
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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 1 234 8.60% 6.80 106.6 Maturity 6 years Face Value $25,000,000 93.8 9 years 33,000,000 8.30 105.4 16.5 years 38,000,000 8.80 95.2 26 years 53,000,000 If the corporate tax rate is 21 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.) 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 1 234 8.60% 6.80 106.6 Maturity 6 years Face Value $25,000,000 93.8 9 years 33,000,000 8.30 105.4 16.5 years 38,000,000 8.80 95.2 26 years 53,000,000 If the corporate tax rate is 21 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.) Aftertax cost of debt %
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FV 100 Bond Coupon rate Price Quote Maturity in semiannu... View the full answer
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Posted Date:
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