Explore BrainMass

Interest Rates and the Cost of Debt

Calculating the Cost of Debt for Ying

Ying Import has several bond issuances outstanding, each making semiannual interest payments. The bonds are listed in table attached. If the corporate tax rate is 34%, what is the aftertax cost of Ying's debt? Coupon Price Face Bond Rate Quote Maturity Value 1 8.00% $106.38 5 years 10,000,000 2 7.50% $98.00 8 years 45,