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    After-tax cost of debt

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    Calculating the Cost of Debt. Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. If the corporate tax rate is 34 percent, what is the after-tax cost of Ying's debt?

    Bond
    Coupon Rate
    Price Quote
    Maturity
    Face Value

    1
    5.00%
    98
    5 years
    $10,000,000

    2
    7.50
    109
    8 years
    45,000,000

    3
    6.40
    94
    15 years
    35,000,000

    4
    9.75
    115
    25 years
    45,000,000

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    https://brainmass.com/business/bond-valuation/after-tax-cost-debt-19260

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    The expert calculates after tax cost of debt for bonds with different coupon rates and price quotes.

    $2.19