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 | 6.2 | % | 106.06 | 5 | years | $ | 42,000,000 | ||||||||
| 2 | 7.7 | 114.72 | 8 | years | 37,000,000 | ||||||||||
| 3 | 7.4 | 113.27 | 15.5 | years | 57,000,000 | ||||||||||
| 4 | 7.0 | 102.51 | 25 | years | 52,000,000 | ||||||||||
| If the corporate tax rate is 30 percent, what is the aftertax cost of Ying |
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