Question 1:
Calculating the Cost of Debt
Ting 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 aftertak cost of Ying's debt? (Round your answer to 2 decimal places. e.g. 32.16.)
|
Bond
|
Coupon Rate
|
Price Quote
|
Maturity
|
Face Value
|
|
1
|
6.5 %
|
104
|
7 years
|
S 20.000.000
|
|
2
|
7.2
|
113
|
9 years
|
36,000,000
|
|
3
|
6.7
|
104
|
18 years
|
46.000.000
|
|
4
|
8.2
|
118
|
30 years
|
62.000.000
|