What is the aftertax cost of the companys debt

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Reference no: EM13943201

Ying Import has several bond issues outstanding, each making semi-annual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote Maturity Face Value 1 8.70% 106.7 7 years $26,000,000 2 6.90 93.7 10 years 32,000,000 3 8.40 105.5 17.5 years 37,000,000 4 8.90 95.3 27 years 52,000,000

Required: If the corporate tax rate is 38 percent, what is the aftertax cost of the company’s debt?

Reference no: EM13943201

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What is the aftertax cost of the companys debt : Ying Import has several bond issues outstanding, each making semi-annual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote Maturity Face Value 1 8.70% 106.7 7 years $26,000,000 2 6.90 93.7 10 years 32,000,000 3 ..

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