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
6.4
%
106.26
5
years
$
44,000,000
2
7.9
114.92
8
years
39,000,000
3
7.6
113.47
15.5
years
59,000,000
4
7.2
102.71
25
years
54,000,000
If the corporate tax rate is 35 percent, what is the aftertax
cost of the company’s debt? (Do not round intermediate
calculations. Enter your answer as...