Question: Please show how you got to this answer! If could please show in Excel that would be fantastic! Thank you so much in advance! Ying

 Please show how you got to this answer! If could please

Please show how you got to this answer! If could please show in Excel that would be fantastic! Thank you so much in advance!

Ying Imports has several bond issues outstanding, each making semi-annual interest payments called coupons. These interest payments represent an annuity, and though paid semi-annually, they are quoted as an annual percent of face value. The face value represents the amount that must be repaid when the loan matures, and is usually equal to the original amount borrowed. Hence a 10% annual coupon typically means that the company has a 10% annual percentage interest rate (APR) on their loan, and pays off the interest every six months by paying 5% interest on the face value. The current market price of a bond (i.e. what a bank would be willing to sell the loan for) is usually also quoted as a percent of face value. The yield to maturity represents the discount rate that sets the present value of the bond's cash flows (the coupons and the repayment of face value at maturity) equal to the bond's price. Since the coupons are paid semi-annually, this yield is quoted as an APR with semi-annual compounding just like the coupons. Ying Imports' bonds are listed in the following table. If the corporate tax rate is 32 percent, what is the after-tax cost of Ying Imports' debt (leave your answer as an APR)? (Do not round your intermediate calculations.)

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