Question

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 % 106.2 7 years $ 21,000,000
2 6.70 94.2 10 years 37,000,000
3 8.40 105.0 17.5 years 42,000,000
4 8.90 94.8 27 years 57,000,000


If the corporate tax rate is 38 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.)
  
Aftertax cost of debt   

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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 32 percent, what is the aftertax cost of Ying's debt?    Bond Coupon Rate Price Quote Maturity Face Value 1 5.8%      107      7 years        $ 18,000,000    2 7.1         116      11 years        38,000,000    3 6.2         111      22 years        48,000,000    4 7.4         122...
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 8.80 % 105.8 4 years $ 28,000,000 2 7.00 94.6 7 years 48,000,000 3 8.50 104.6 14.5 years 53,000,000 4 9.00 106.5 24 years 68,000,000 must find the Market Value for each bond. The weight of each bond and the YTM of each bond and If the corporate Tax rate is...
Problem 12-22 Calculating the Cost of Debt [LO2] Ying Import has several bond issues outstanding, each...
Problem 12-22 Calculating the Cost of Debt [LO2] 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 8.60 % 106.1 6 years $ 20,000,000 2 6.60 94.3 9 years 38,000,000 3 8.30 104.9 16.5 years 43,000,000 4 8.80 94.7 26 years 58,000,000 If the corporate tax rate is 30 percent, what is the aftertax cost of the company’s debt? (Do...
Ying Imports has several bond issues outstanding, each making semi-annual interest payments called coupons. These interest...
Ying Imports has several bond issues outstanding, each making semi-annual interest payments called coupons. These interest payments represent an annuity, and though paid semi-annually, they are quoted as an annual percent of face value. The face value represents the amount that must be repaid when the loan matures, and is usually equal to the original amount borrowed. Hence a 10% annual coupon typically means that the company has a 10% annual percentage interest rate (APR) on their loan, and pays...
Can you please show this in excel with formulas? And with showing where each # is...
Can you please show this in excel with formulas? And with showing where each # is derived from? 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 8.90 % 105.4 3 years $ 24,000,000 2 6.60 95.0 6 years 44,000,000 3 8.60 104.2 13.5 years 49,000,000 4 9.10 106.1 23 years 64,000,000 If the corporate tax rate is 35 percent,...
Galvatron Metals has a bond outstanding with a coupon rate of 6 percent and semiannual payments....
Galvatron Metals has a bond outstanding with a coupon rate of 6 percent and semiannual payments. The bond currently sells for $1,940 and matures in 20 years. The par value is $2,000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt?
Galvatron Metals has a bond outstanding with a coupon rate of 5.7 percent and semiannual payments....
Galvatron Metals has a bond outstanding with a coupon rate of 5.7 percent and semiannual payments. The bond currently sells for $943 and matures in 19 years. The par value is $1,000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt? 2.90% 3.11% 4.01% 3.50% 3.79%
Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments....
Galvatron Metals has a bond outstanding with a coupon rate of 6.7 percent and semiannual payments. The bond currently sells for $1,863 and matures in 21 years. The par value is $2,000 and the company's tax rate is 40 percent. What is the company's aftertax cost of debt? A. 7.22% B. 4.33% C. 4.00% D. 6.74% E. 4.59%
Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 6 years ago. The bond currently...
Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 6 years ago. The bond currently sells for 87.5 percent of its face value. The book value of this debt issue is $103 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity; the book value of this issue is $62 million, and it sells for 59 percent of par. The company’s tax rate is 38 percent. What is the...
William metals has a bond outstanding with a coupon rate of 6.6 percent and semiannual payments....
William metals has a bond outstanding with a coupon rate of 6.6 percent and semiannual payments. The bond currently sells for 98.75% of the par and matures in 15 years. The par value is $2,000 and the companys tax rate is 21 percent. What is the companys after-tax cost of debt?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT