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

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%

Expert Solution

Market value has been calculated by multiplying Face value by the Price Quote percentage.

YTM(calculated separately) is as follows:

jeff jeffy answered 2 years ago

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

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