Question: Problem 3 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 4.2%, a face value of $1,000 and a price of

Problem 3 Intro Lugget Corp. has one bond issue outstanding with

Problem 3 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 4.2%, a face value of $1,000 and a price of $1,102.36, which matures in 10 years. The company's marginal tax rate is 25%. | Attempt 2/3 for 10 pts. Part 1 What is Lugget's pre-tax cost of debt? 4+ decimals Submit | Attempt 1/3 for 10 pts. Part 2 What is the company's after-tax cost of debt? 4+ decimals

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