Question: Problem 15 Part 1 and 2 Problem 15 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate

Problem 15 Part 1 and 2

Problem 15 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3% and a yield to maturity of 5.2%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 28%. Part 1 BAttempt 1/10 for 10 pts. What is the (pre-tax) cost of debt? 3+ decimals Submit BAttempt 1/10 for 10 pts. Part 2 What is the after-tax cost of debt? 4+ decimals Submit

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