Question: Intro Simple Corp, has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.4 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 \3.4 and a yield to maturity of \4.7. Simple Corp.'s average tax rate is \18 and its marginal tax rate is \34. Part 1 \$ \\mathrm{B} \$ * Attempt \$ 1 / 5 \$ for \$ 10 \\mathrm{pts} \$. What is the (pre-tax) cost of debt? Correct \$ \\checkmark \$ The pre-tax cost of debt equals the yield to maturity on a bond, or 0.047 in this case. Part 2 B \$ \\mathrm{B} \$ - Attempt \$ 5 / 5 \$ for \$ 10 \\mathrm{pts} \$. What is the after-tax cost of debt

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