Question: Problem 15 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.8% and a yield to

Problem 15 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.8% and a yield to maturity of 5%. Simple Corp.'s average tax rate is 18% an its marginal tax rate is 29% 18 - Attempt 1/10 for 10 pts. Part 1 What is the (pre-tax) cost of debt? 5.00% Correct The pre-tax cost of debt equals the yield to maturity on a bond, or 0.05 in this case B Attempt 1/10 for 10 pts Part 2 What is the after-tax cost of debt? 4 decimals Submit

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