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 table below.

Bond	Coupon Rate	Price Quote	Maturity	Face Value
1	8.70%	105.7	7 years	$27,000,000
2	6.90	94.7	10 years	47,000,000
3	8.40	104.5	17.5 years	52,000,000
4	8.90	106.4	27 years	67,000,000

If the corporate tax rate is 22 percent, what is the aftertax cost of the company’s debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago

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