Question: 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
| 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 31 percent, what is the aftertax cost of Ying's debt? (Do not round your intermediate calculations.) |
| Bond | Coupon Rate | Price Quote | Maturity | Face Value |
| 1 | 6.5% | 100 | 7 years | $ 21,000,000 |
| 2 | 7.1 | 106 | 10 years | 40,000,000 |
| 3 | 6.1 | 100 | 22 years | 47,000,000 |
| 4 | 6.8 | 114 | 35 years | 62,000,000 |
| 3.99% 4.41% 6.09% 4.2% 4.04% | ||||
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