Question: Problem 3 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.5% and a yield to

Problem 3 Intro Simple Corp. has one bond issue oustanding, with

Problem 3 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.5% and a yield to maturity of 5.5%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 30%. Part 1 18 Attempt 1/5 for 6 pts. What is the (pre-tax) cost of debt? 3+ decimals Submit 18 Attempt 1/5 for 8 pts. Part 2 What is the after-tax cost of debt? 4+ decimals Submit

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