Question: Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.1% and a yield to maturity of

Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.1% and a yield to maturity of 5% Simple Corp 's average tax rate is 18% and its marginal tax rate is 33%. - Attempt 1/3 for 10 pts Part 1 What is the (pre-tax) cost of debt? 5.0% Correct The pre-tax cost of debt equals the yield to maturity on a bond, or 0.05 in this case. Attempt 2/3 for 9 pts Part 2 What is the after-tax cost of debt? decimals Submit

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