Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are...
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Accounting
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 31 percent, what is the aftertax cost of Ying's debt?
Bond
Coupon Rate
Price Quote
Maturity
Face Value
1
5.6%
103
3 years
$ 22,000,000
2
6.8
109
8 years
42,000,000
3
5.7
99
21 years
41,000,000
4
6.7
112
35 years
64,000,000
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