In: Finance
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.) |
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -