# Understanding the "long-term corporate interest rates" and equity bond in the quote

I'm reading Warren Buffett and the Interpretation of Financial Statements and quote:

Consider this: With long-term corporate interest rates at approximately 6.5% in 2007, Warren’s Washington Post equity bonds/shares, with a pretax \$54 earnings/interest payment, were worth approximately \$830 per equity bond/share that year (\$54 ÷ .065 = \$830). During 2007, Warren’s Washington Post equity bonds/shares traded in a range of between \$726 and \$885 a share, which is right about in line with the equity bond’s capitalized value of \$830 a share.

I have multiple questions:

1. The `long-term corporate interest rates` does not seem to reach 6.5% in 2007, according to these following links. Am I looking at the wrong place?
2. I'm not sure if I understood the `equity bond` in this chapter. The author is relating the reciprocal of P/E ratio to the current long-term interest rates, why is that? The logic seems to be the following:
1. With the rate at 6.5%, the P/E ratio should be 100/6.5=15.38, so the estimated stock price should be \$54*15.38=\$830.
2. If a company has durable competitive advantage and its stock has a P/E ratio lower than 15.38, it would be good to invest.