Question: Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond 1 - Coupon Rate:

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.

Bond 1 - Coupon Rate: 8.50% , Price Quote: 105.5 , Maturity: 5 years , Face Value: $25,000,000

Bond 2 - Coupon Rate: 6.70% , Price Quote: 94.9 , Maturity: 8 years , Face Value: 45,000,000

Bond 3 - Coupon Rate: 8.20% , Price Quote: 104.3 , Maturity: 15.5 years , Face Value: 50,000,000

Bond 4 - Coupon Rate: 8.70% , Price Quote: 106.2 , Maturity: 25 years , Face Value: 65,000,000

What is the market value of each of the company's bonds? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)

Bond 1 -

Bond 2 -

Bond 3 -

Bond 4 -

What is the market value weight of each of the company's bonds? (Round your answers to 4 decimal places (e.g., 32.1616).)

Bond 1 -

Bond 2 -

Bond 3 -

Bond 4 -

What is the YTM of each of the company's bonds? (Input your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is the market value weight of each of the company's bonds? (Round your answers to 4 decimal places (e.g., 32.1616).)

Bond 1 -

Bond 2 -

Bond 3 -

Bond 4 -

If the corporate tax rate is 34 percent, what is the aftertax cost of the companys debt? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Aftertax cost of debt - ____%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!