Question: Problem 4 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.7%, a face value of $1,000 and a price of

Problem 4 Intro Lugget Corp. has one bond issue outstanding with

Problem 4 Intro Lugget Corp. has one bond issue outstanding with an annual coupon of 3.7%, a face value of $1,000 and a price of $1,152.7, which matures in 10 years. The company's tax rate is 31%. Attempt 1/5 for 10 pts. Part 1 What is Lugget's pre-tax cost of debt? 4+ decimals Submit Attempt 1/5 for 10 pts. Part 2 What is the company's after-tax cost of debt? 4+ decimals Submit

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