In: Finance
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 35 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 | 5.8% | 105 | 5 years | $ 19,000,000 |
2 | 6.4 | 115 | 9 years | 45,000,000 |
3 | 5.8 | 108 | 19 years | 47,000,000 |
4 | 6.7 | 119 | 31 years | 58,000,000 |
A.3.24%
B.4.98%
C.3.4%
D.3.11%
E.3.08%
Market value has been calculated by multiplying Face value by the Price Quote percentage.
YTM(calculated separately) is as follows: