Question: Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 4% and a yield to maturity of 5.9%.

Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 4% and a yield to maturity of 5.9%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 32%. Que1 1 Attempt 1/10 for 10 pts. What is the (pre-tax) cost of debt? What is the after-tax cost of debt

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