Question: Problem 3 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.7% and a yield to

Problem 3 Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.7% and a yield to maturity of 4.5%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 31%. IB- Attempt 1/5 for 10 pts. Part 1 What is the (pre-tax) cost of debt? Correct The pre-tax cost of debt equals the yield to maturity on a bond, or 0.045 in this case. Attempt 3/5 for 8 pts. Part 2 What is the after-tax cost of debt? 4+ decimals Submit About Blog Contact FAQ Privacy Polic

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