Question: 6. Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 4% and a yield to maturity of

6. Simple Corp. has one bond issue oustanding, with a maturity

6. Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 4% and a yield to maturity of 5.7% Simple Corp.'s average tax rate is 18% and its marginal tax rate is 34%. a. What is the (pre-tax) cost of debt? b. What is the after-tax cost of debt

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