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 |
|
|
5.2 |
% |
|
|
105.06 |
|
|
5 |
years |
|
$ |
32,000,000 |
|
| 2 |
|
|
6.7 |
|
|
|
113.72 |
|
|
8 |
years |
|
|
27,000,000 |
|
| 3 |
|
|
6.4 |
|
|
|
112.27 |
|
|
15.5 |
years |
|
|
47,000,000 |
|
| 4 |
|
|
6.0 |
|
|
|
101.51 |
|
|
25 |
years |
|
|
42,000,000 |
|
If the corporate tax rate is 34 percent, what is the after tax cost of the company's debt?