What is the aftertax cost of the company debt

Reference no: EM13288289

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% 105.9 3 Years $29,000,000
2 6.40 94.5 6 Years 49,000,000
3 8.60 104.7 13.5 Years 54,000,000
4 9.10 94.5 23 Years 69,000,000

If the corporate tax rate is 35 percent, what is the aftertax cost of the company's debt?

Reference no: EM13288289

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