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Discuss what is the after tax cost of the companys debt

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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     5.2 %     105.06     5  years   $ 32,000,000  
2     6.7       113.72     8  years     27,000,000  
3     6.4       112.27     15.5  years     47,000,000  
4     6.0       101.51     25  years     42,000,000  

If the corporate tax rate is 34 percent, what is the after tax cost of the company's debt?

Reference no: EM131759939

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