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

Bond	Coupon Rate	Price Quote	Maturity	Face Value
1	6.2%	105	6 years	$ 22,000,000
2	7.6	111	10 years	36,000,000
3	6.1	104	20 years	49,000,000
4	7.5	119	34 years	60,000,000

Multiple Choice

• 3.75%

• 3.91%

• 5.92%

• 3.71%

• 4.1%