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 32 percent, what is the aftertax cost of Ying's debt?

Bond	Coupon Rate	Price Quote	Maturity		Face Value
1	6%	100	5	years	$ 22,000,000
2	7.2	106	10	years	40,000,000
3	5.9	101	23	years	40,000,000
4	6.7	112	38	years	61,000,000

Multiple Choice

• 4.09%

• 3.88%

• 4.29%

• 6.01%

• 3.93%