Question: Hi! Does anyone know the answer? My final result is 1.7944%, which does not work. Thanks Ying Import has several bond issues outstanding, each making
Hi! Does anyone know the answer? My final result is 1.7944%, which does not work.
Thanks
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 5.3% 105.16 5 years $ 33,000,000 2 6.8 113.82 8 years 28,000,000 3 6.5 112.37 15.5 years 48,000,000 4 6.1 101.61 25 years 43,000,000 If the corporate tax rate is 30 percent, what is the after tax cost of Ying's debt? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of debt %
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