Ying Import has several bond issues outstanding, each making semiannual interest payments

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 31 percent, what is the aftertax cost of Ying's debt? 

  Bond

Coupon Rate

Price Quote

Maturity

Face Value

16.3%    107    5 years      $ 23,000,000  27.3       115    9 years      42,000,000  36.5       108    23 years      43,000,000  47.3       122    38 years      56,000,000  

rev: 05_16_2019_QC_CS-168873

Multiple Choice

• 4.01%
• 5.53%
• 3.67%
• 3.82%
• 3.63%