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 8.60% 105.6 6 years $26,000,000 2 6.80 94.8 9 years 46,000,000 3 8.30 104.4 16.5 years 51,000,000 4 8.80 106.3 26 years 66,000,000
Required:
What is the market value of each of the company's bonds? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)
Bond Market value 1 $ 2 $ 3 $ 4 $
What is the market value weight of each of the company's bonds? (Round your answers to 4 decimal places (e.g., 32.1616).)
Bond Weight 1 2 3 4
What is the YTM of each of the company's bonds? (Input your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)
Bond YTM 1 % 2 % 3 % 4 %
If the corporate tax rate is 30 percent, what is the aftertax cost of the companyâs debt? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)
Aftertax cost of debt %
| 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 | 8.60% | 105.6 | 6 years | $26,000,000 |
| 2 | 6.80 | 94.8 | 9 years | 46,000,000 |
| 3 | 8.30 | 104.4 | 16.5 years | 51,000,000 |
| 4 | 8.80 | 106.3 | 26 years | 66,000,000 |
| Required: |
| What is the market value of each of the company's bonds? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).) |
| Bond | Market value |
| 1 | $ |
| 2 | $ |
| 3 | $ |
| 4 | $ |
| What is the market value weight of each of the company's bonds? (Round your answers to 4 decimal places (e.g., 32.1616).) |
| Bond | Weight |
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| What is the YTM of each of the company's bonds? (Input your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Bond | YTM |
| 1 | % |
| 2 | % |
| 3 | % |
| 4 | % |
| If the corporate tax rate is 30 percent, what is the aftertax cost of the companyâs debt? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Aftertax cost of debt | % |
Related questions
| 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 | 5.6 | % | 105.46 | 5 | years | $ | 36,000,000 | ||||||||
| 2 | 7.1 | 114.12 | 8 | years | 31,000,000 | ||||||||||
| 3 | 6.8 | 112.67 | 15.5 | years | 51,000,000 | ||||||||||
| 4 | 6.4 | 101.91 | 25 | years | 46,000,000 | ||||||||||
| If the corporate tax rate is 30 percent, what is the aftertax cost of Yingâs debt? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Cost of debt | % |
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 | 8.70 | % | 106.2 | 7 | years | $ | 21,000,000 |
| 2 | 6.70 | 94.2 | 10 | years | 37,000,000 | ||
| 3 | 8.40 | 105.0 | 17.5 | years | 42,000,000 | ||
| 4 | 8.90 | 94.8 | 27 | years | 57,000,000 | ||
If the corporate tax rate is 38 percent, what is the aftertax cost of the companyâs debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Aftertax cost of debt
