Ying import has several bond issues outstanding each making


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 6.5 % 106.36 5 years $ 45,000,000 2 8.0 115.02 8 years 40,000,000 3 7.7 113.57 15.5 years 60,000,000 4 7.3 102.81 25 years 55,000,000 If the corporate tax rate is 30 percent, what is the aftertax cost of Ying’s debt?

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Financial Management: Ying import has several bond issues outstanding each making
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