Question: Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote
| Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. |
| Bond | Coupon Rate | Price Quote | Maturity | Face Value | |
|---|---|---|---|---|---|
| 1 | 6.5% | 106.46 | 5 | years | $ 45,000,000 |
| 2 | 8.0 | 115.02 | 8 | years | 40,000,000 |
| 3 | 7.7 | 113.57 | 15.5 | years | 60,000,000 |
| 4 | 7.3 | 102.81 | 25 | years | 67,000,000 |
| If the corporate tax rate is 25 percent, what is the aftertax cost of the companys debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
I got 4.69% but it was not correct. Please help.
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