If the corporate tax rate is 35 percent what is the


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?

 

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Finance Basics: If the corporate tax rate is 35 percent what is the
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