Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. If the corporate tax rate is 34 percent, what is the aftertax cost of the company’s debt?

Transcribed Image Text:

Coupon Rate 8.50% Bond Price Quote Maturity Face Value 5 years 8 years 152 years 25 years $20,000,000 105.0 6.80 95.4 103.8 40,000,000 8.20 45,000,000 60,000,000 4 8.70 105.7